Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $125,460 for the year; direct labor was estimated to total $153,000.

	(1/1)			(12/31)
Raw Materials Inventory	$	13,200		$	10,200
Work in Process Inventory	$	29,200		$	22,200
Finished Goods Inventory	$	41,200		$	32,200

The following transactions have occurred during the year.

Raw materials purchases	$	132,000
Direct materials used	$	71,400
Direct labor	$	137,000
Indirect materials used	$	16,200
Indirect labor	$	19,200
Factory equipment depreciation	$	28,200
Factory rent	$	15,200
Factory utilities	$	11,700
Other factory costs	$	8,700

(a) Calculate the predetermined overhead rate

Predetermined Overhead Rate

%

(b) Calculate cost of goods manufactured.

Cost of Goods Manufactured

c) Calculate the over- or underapplied overhead. (Input the amount as positive value.)

(d) Calculate adjusted cost of goods sold

Adjusted Cost of Goods Sold