Hammer Inc. estimated at the beginning of 2016 that $12,000 of manufacturing overhead would be incurred and that 1,000 direct labor hours would be incurred for the year. Hammer Inc. actually incurred the following activities during 2016:

Direct materials:

Beginning inventory $17,000

Purchases 61,600

Ending inventory 10,400

Direct manufacturing labor (1,100 hours) $15,000

Manufacturing overhead 13,000

There is no work in process inventory

Beginning finished goods inventory 23,000

Ending finished goods inventory 16,000

Required:

a. What is the cost of direct materials used during 2016?

b. What is the manufacturing overhead applied during 2016?

c. What is the over/under overhead applied for 2016?

d. What is the cost of goods sold for 2016 reported on the income statement?