Kansas Company uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct labor-hours to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows:

Direct labor-hours150,000180,000210,000Variable overhead costs$900,000$1,080,000$1,260,000Fixed overhead costs612,000612,000612,000Total overhead$1,512,000$1,692,000$1,872,000

The expected volume is 180,000 direct labor-hours for the entire year. The following information is for March, when Jobs 6023 and 6024 were completed:

Inventories, March 1Materials and supplies$30,500Workinprocess (Job 6023)$167,000Finished goods$334,000Purchases of materials and suppliesMaterials$401,000Supplies$48,000Materials and supplies requisitioned for productionJob 6023$132,000Job 6024115,000Job 602574,500Supplies20,000$341,500

Factory direct labor-hours (DLH)Job 602311,000 DLHJob 60248,500 DLHJob 60255,000 DLH

Labor costsDirect labor wages (all hours @ $8)$196,000Indirect labor wages (12,000 hours)60,000Supervisory salaries106,000Building occupancy costs (heat, light, depreciation, etc.)Factory facilities$19,000Sales and administrative offices7,500Factory equipment costsPower14,000Repairs and maintenance5,000Other7,500$26,500

(Note:Regardless of your answer to requirementa, assume that the predetermined overhead rate is $10 per direct labor-hour. Use this amount in answering requirementsbthroughe.)

Required:

a.Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year.(Round your answer to 2 decimal places.)

b.Compute the total cost of Job 6023 when it is finished.

c.How much of factory overhead cost was applied to Job 6025 during March?

d.What total amount of overhead was applied to jobs during March?

e.Compute actual factory overhead incurred during March.

f.At the end of the year, Kansas Company had the following account balances:

Overapplied overhead$4,000Cost of goods sold2,960,000Work-in-process inventory109,000Finished goods inventory253,000

Assuming that the overapplied overhead is not material, show the new account balances in the following table.