Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's estimates were as follows: manufacturing overhead cost, $1,120,000; direct materials to be used in production, $640,000. The company's inventory accounts at the beginning and end of the year were as follows:

	Beginning			Ending
Raw Materials	$	73,000		$	21,400
Work in Process		77,000			164,000
Finished Goods		414,000			274,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct)	$	496,000
Direct labour cost		97,000
Manufacturing overhead costs:
Indirect labour		184,000
Property taxes		49,400
Depreciation of equipment		274,000
Maintenance		96,400
Insurance		8,400
Rent, building		194,000

Required:

1-a. Compute the predetermined overhead rate for the year.

1-b. Compute the amount of under- or overapplied overhead for the year.

2. Prepare a schedule of cost of goods manufactured for the year.

3. Compute the cost of goods sold for the year. (Do not include any under- or overapplied overhead in your cost of goods sold figure.)

4. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $9,900 in direct materials and $4,100 in direct labour cost and the company priced its jobs at 20% above cost to manufacture?

5. Direct materials made up $25,400 of the $164,000 ending work-in-process inventory balance. Compute the missing amounts.