Part A

DrakeCompany manufactures quality gentlemen's clothing.The following selected financial information for the fiscal year 2017 is provided:

Item

Amount

Sales

$100,000

Cost of Goods Manufactured

75,000

Direct Material Purchased

30,000

Factory Overhead

10,000

Work in Process - January 1

30,000

Work in Process - December 31

15,000

Direct Material - December 31

10,000

Finished Goods Inventory - December 31

60,000

Net Income

15,000

Direct Materials used

30,000

Cost of Goods Sold

55,000

Use this information toprepareda detailed Schedule of Costs of Goods Manufactured for FY 2017: (Round dollar values & enter as whole dollars only.)

Part B

During March 2017, Kendrick Corporation recorded $17,000 of costs related to factory overhead.Kendrick's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $18,000 would be incurred, and 10,000 direct labor hours would be worked.During March, 10,200 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):

1. the amount of factory overhead that was applied in March

2. the amount of factory overhead that was over or under applies

3. was the factory overhead was over applied or under applied