Overhead is applied on the basis of direct labor hours. The following information relates to the year just ended. Data: Estimated total overhead costs $275,000 Estimated total direct labor hours 25,000 Actual total direct labor hours 27,760 Actual costs for the year: Purchase of raw (direct) materials $375,000 Direct labor cost $536,300 Manufacturing overhead $302,750 Inventories: Beginning Ending Raw Materials (All Direct) $15,000 $11,375 Work in Process 27,875 22,350 Finished Goods 34,600 26,450 Use the data to answer the following. Replace every ? with a formula. 1 Calculate and dispose of overapplied or underapplied manufacturing overhead. Note: Use cell A2 to A23 from the given information to complete this question. Overhead: Actual overhead cost $302,750 Predetermined overhead rate $11 Actual direct labor hours 27,760 Total overhead applied 305,360 (Over) or under applied overhead $(2,610) 2 Calculate the cost of goods manufactured and cost of goods sold. Note: Use cell A2 to A23 from the given information to complete this question. Enter all ending inventory amounts as negative numbers. Stanford Enterprises Cost of Goods Manufactured Report Direct materials: Beginning raw materials inventory $15,000 Plus: Raw materials purchased 375,000 Less: Ending raw materials 11,375 Raw materials used in production 378,625 Direct labor 536,300 Manufacturing overhead applied 305,360 Total current manufacturing costs 1,220,285 Plus: Beginning work in process inventory 27,875 Less: Ending work in process inventory 22,350 Cost of goods manufactured $1,225,810 3 Prepare an income statement for a manufacturing firm. Note: Use cell A2 to A23 from the given information to complete this question. Enter all ending inventory amounts as negative numbers. Stanford Enterprises Income Statement Sales revenue $1,500,000 Less: Cost of Goods Sold Finished goods inventory, beginning $34,600 Plus: Cost of goods manufactured 1,225,810 Less: Ending finished goods inventory 26,450 Unadjusted cost of goods sold $1,233,960 Underapplied (overapplied) overhead (2,610) Adjusted cost of goods sold $1,231,350 Gross Profit $268,650 Less: Selling, general, and administrative expenses (10% of Sales) $150,000 Net Operating Income $118,650

\begin{tabular}{l|l|l|} 40 & Enter all ending inventory amounts as negative numbers. \\ Cost of Goods Manufactured Report \\ 41 \end{tabular} 553 Prepare an income statement for a manufacturing firm. Note: Use cell A2 to A23 from the given information to complete this question. Enter all ending inventory amounts as negative numbers