Question 1 A company had the following transactions and events during its first year of operations. Estimated overhead for the year was $770,000; estimated direct labor cost for the year was $350,000. a. Purchased raw materials on account, $567,000. b. 12 percent of raw materials purchased was requisitioned as indirect materials. c. Direct labor for production is $331,000, indirect labor is $125,000. d. The balances of inventory follow: Required: 1. Compute the predetermined overhead rate for the year. The company uses direct labor dollars as the allocation base. 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. 4. Prepare a schedule of cost of goods sold