QUESTION 1 Freeman Furnishings has summarized its data as shown. Direct labor hours will be used as the activity base to allocate overhead: Raw materials purchased $ 320,000 Raw materials, beginning inventory 15,000 Raw materials, ending inventory 14,000 Work in process, beginning inventory 35,000 Work in process, ending inventory 37,000 Estimated overhead 300,000 Depreciation of factory building 50,000 Factory real estate taxes 7,382 Factory utility expenses 45,000 Indirect materials 20,000 Indirect labor 11,000 Direct labor cost 100,000 Direct labor hours incurred 24,000 Estimated direct labor hours 25,000 Raw materials purchased $ 320,000 Compute the cost of goods manufactured. QUESTION 2 For the month of September Allpoint Company applied overhead of $98,000. The actual overhead incurred in September was $98,766. When the under or over applied overhead is closed to cost of goods sold, net operating income will (increase or decrease) by $ (number)