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, $1,037,000; direct materials to be used in production, $610,000. The company's inventory accounts at the beginning and end of the year were as follows:

	Beginning			Ending
Raw Materials	$	74,500		$	21,100
Work in Process		75,500			161,000
Finished Goods		411,000			271,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct)	$	499,000
Direct labour cost		95,500
Manufacturing overhead costs:
Indirect labour		181,000
Property taxes		49,100
Depreciation of equipment		271,000
Maintenance		96,100
Insurance		8,100
Rent, building		191,000

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 $9,600 in direct materials and $3,800 in direct labour cost and the company priced its jobs at 30% above cost to manufacture?

5. Direct materials made up $25,100 of the $161,000 ending work-in-process inventory balance. Compute the missing amounts.