Selected data concerning the past years operations of the Lone Star Leather Company are as follows:

	Inventories
	Beginning	Ending
Raw material	$71,000	$	81,000
Work in process	80,000		30,000
Finished goods	90,000		120,000

Other data:

Direct material used

$318,000

Total manufacturing costs charged to production during the year (includes direct material, direct labor, and manufacturing overhead applied at a rate of 60% of direct-labor cost)

686,000

Cost of goods available for sale

826,000

Selling and administrative expenses

1.

What was the cost of raw materials purchased during the year?

2.

What was the direct-labor cost charged to production during the year?

3 What was the cost of goods manufactured during the year?

4What was the cost of goods sold during the year?

Crunchem Cereal Company incurred the following actual costs during 20x4.

Direct material used	$	270,000
Direct labor		150,000
Manufacturing overhead		315,000

The firms predetermined overhead rate is 210 percent of direct-labor cost

The January 1 inventory balances were as follows:

Raw material	$	28,000
Work in process		39,000
Finished goods		44,000

Each of these inventory balances was 10 percent higher at the end of the year.

A Prepare a schedule of cost of goods manufactured for 20x4.

B What was the cost of goods sold for the year?

The following data pertain to the Aquarius Hotel Supply Company for the year just ended.

Budgeted sales revenue

$

205,000

Budgeted manufacturing overhead

364,000

Budgeted machine hours (based on practical capacity)

8,000

Budgeted direct-labor hours (based on practical capacity)

20,000

Budgeted direct-labor rate per hour

14

Actual manufacturing overhead

338,000

Actual machine hours

11,000

Actual direct-labor hours

18,000

Actual direct-labor rate per hour 17

1.

Compute the firms predetermined overhead rate for the year using each of the following common cost drivers.

a)machine hours_____per machine hour and the over applied or under applied overhead for the year

b)direct labor hours______per direct labor hour and the over applied or under applied overhead for the year

c)direct labor dollars______per direct labor dollar and the over applied or under applied overhead for the year cost drivers.

The following information pertains to Paramus Metal Works for the year just ended.

Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Budgeted selling and administrative expenses: $436,000
Actual manufacturing overhead:
Depreciation	$	234,000
Property taxes		20,000
Indirect labor		82,000
Supervisory salaries		202,000
Utilities		59,000
Insurance		32,000
Rental of space		301,000
Indirect material (see data below)		79,000
Indirect material:
Beginning inventory, January 1		48,000
Purchases during the year		95,000
Ending inventory, December 31		64,000

1.

Compute the firms predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)

2.	Calculate the overapplied or underapplied overhead for the year