- fury to allocate any over- or underapplied overhead to Cost of Goods Sold. Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the follow- ing costs during 2017: direct materials costs, $650,000; direct labor costs, $3,000,000; and factory over- head costs applied, $1,800,000. 1. Determine the company's predetermined overhead rate for 2017. 2. Assuming that the company's $71,000 ending Work in Process Inventory account for 2017 had $20,000 of direct labor costs, determine the inventory's direct materials costs. 3. Assuming that the company's $490,000 ending Finished Goods Inventory account for 2017 had $250,000 of direct materials costs, determine the inventory's direct labor costs and its overhead costs