Key Manufacturing Co. applies factory overhead to production on the basis of direct labor costs. Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800, direct labor costs would be $154,000, and factory overhead costs would be $231,000.

(1) Key's goods in process inventory at the end of the year was $28,000 which included $5,200 of direct labor cost. What amount of direct materials cost was included?

(2) Key's finished goods inventory was $34,300 of which direct materials cost were $8,100. Determine the direct labor cost and factory overhead cost of the finished goods inventory.

HINT: You must calcuate the company's predetermined overhead rate (POHR) to answer these questions.

Show your answers in the spaces below. Also show in the space provided the perdetermined overhead rate (POHR) used in your calculations

	Predetermined overhead rate (POHR)
(1)	Direct materials cost included in goods in process inventory
(2)	Direct labor cost included in finished goods inventory
	Factory overhead cost included in finished goods inventory