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Required information The Foundational 15 (Algo) (LO3-1, LO3-2, LO3-3, LO3-4) [The following information applies to the questions displayed below.) Bunnell Corporation is a manufacturer that

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Required information The Foundational 15 (Algo) (LO3-1, LO3-2, LO3-3, LO3-4) [The following information applies to the questions displayed below.) Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials $ 74,000 Work in process $ 31,800 Finished goods $ 52,200 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $14.50 per direct labor hour was based on a cost formula that estimated $580,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $690,000 b. Raw materials used in production, $641,800. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services direct labor, $530,000; indirect labor, $150,000; selling and administrative salaries, $308,000. d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing). $457.000 e. Incurred various manufacturing overhead costs (eg, depreciation, Insurance, and utilities). $430,000 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all Jobs during the year. g. Jobs costing $1703,300 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,510,000. The jobs cost $1713,300 to manufacture according to their job cost sheets. Foundational 3-13 (Algo) 9. Is manufacturing overhead underapplied or overapplied for the year? By how much? Adjusted cost of goods sold Foundational 3-14 (Algo) 14. What is the gross margin for the year? Gross margin Foundational 3-15 (Algo) 15. What is the net operating income for the year? Net operating income

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