Rockville, Inc. uses a job-costing system. It applies manufacturing overhead on the basis of direct labor dollars. The following information relates to the first quarter of 2012 hereafter referred to as Q1/2012: Estimated manufacturing overhead for the quarter was $775,000. Rockville estimated that their jobs would consume $250,000 of direct labor cost. By the end of the first quarter of 2012, Job 1 has been sold; Job 2 has completed production and is ready for sale but no sale has occurred; Job 3 has not completed production. Jobs 1, 2 and 3 are the only three jobs that Rockville works on in Q1/2012. The following additional data is available for the quarter: Job number WIP Inventory in the beginning 1/1/2012 Direct Materials Direct Labor Cost 1 $11,300 $150,000 $62,000 2 $22,500 $290,000 $91,000 3 $0 $301,000 $93,000 1. Compute the company's predetermined overhead application rate for Q1-2012 2. What is Rockvilles cost of goods sold in Q1/2012? Dont worry about any adjustments for variance to answer this question. 3. What is the dollar value of cost of goods manufactured during Q1/2012?

the question is answered here:

https://www.chegg.com/homework-help/questions-and-answers/rockville-inc-uses-job-costing-system-applies-manufacturing-overhead-basis-direct-labor-do-q84413964?trackid=1571dd41fc58&strackid=f83ce4bddad5

The followup question is:

1. During the quarter, Rockville marks up its sales by 65% relative to the cost of goods sold prior to any adjustment for over-or under-applied overhead. At the end of the quarter, Rockville realizes that its actual overhead costs for the year equals estimated overhead, that is, actual overheads are $775,000.

All adjustments for all over-or under-applied overhead are to COGS.

What is the reported gross profit (or gross margin) you will observe for Rockville on its quarterly statement for Q1/2012? Keep in mind that on its quarterly financial statements, Rockville will report adjusted COGS. That is, reported COGS includes all adjustments for over-or under-applied overhead.