Exercise 15-3 Adjusting factory overhead LO P4

er 15 Saved Exercise 15-13 Adjusting factory overhead LO P4 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. Inventories Raw materials Work in process Finished goods $43,00052,000 21,300 35,600 10,200 63,000 Activities and information for May 210,000 345,000 Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs 15,000 80,000 120,000 1.410 1,400,000 Sales (received in cash) Predetermined overhead rate based on direct labor cost 70% Determine whether there is over or underapplied overhead. Factory Overhead