Estimated total fixed manufacturing overhead......................................................$14,000

Estimated variable manufacturing overhead per direct labor-hour...........................$2.00

Estimated total direct labor-hours to be worked........................................................2,000

Total actual manufacturing overhead costs incurred..............................................$16,000

Direct Materials Job P- $13,000 Job Q- $8,000

Direct Labor Job P- $21,000 Job Q- $7,500

Actual Direct Labor-Hours Worked Job P- 1,400 Job Q- 500

1. What is the companys predetermined overhead rate?

2. How much manufacturing overhead was applied to Job P and Job Q?

3. What is the direct labor hourly wage rate?

4. If Job P includes 20 units, what is its unit produced cost? What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

8. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufacturing.

11. Prepare a schedule of cost of goods sold. (Stop after computing the unadjusted cost of goods sold.)

13. What is the amount of underapplied or overapplied overhead?

15. Assume that Job P includes 20 units that each sell for $3,000 and that the companys selling and administrative expenses in March were $14,000. Prepare an absorption costing income statement for March.