Shaban Company (SC) produces elegant Pistol Pete bobbleheads using a sophisticated 3D printing manufacturing process. SC uses a normal costing system and machine hours (MH) to apply overhead to production. Any manufacturing overhead variance is closed to COGS at the end of the year.

SC sold 45,000 bobbleheads during the past calendar year. The bobbleheads sell for $50 each. SC’s accounting records provide the following information for the past year:

Estimated Manufacturing Overhead ............. $500,000

Estimated direct labor hours ...................... 50,000 DLH

Estimated machine hours .......................... 95,000 DMH

Actual direct labor hours .......................... 55,000 DLH

Actual machine hours .............................. 92,000 MH

Purchases of direct materials ...................... $350,000

Direct materials inventory, January 1 ............ $15,000

Direct materials inventory, December 31 ........ $40,000

Direct labor dollars .................................. $725,000

Maintenance on factory equipment................ $145,000

Depreciation, sales headquarters.................. $30,000

Depreciation, factory equipment .................. $55,000

Property taxes on the factory ...................... $22,000

Property taxes on sales headquarters .............. $16,000

Utilities, factory ..................................... $128,000

Utilities, sales headquarters ........................ $1,900

Insurance on the factory ............................ $17,000

Salary, sales supervisor ............................. $90,000

Salary, Administration .............................. $150,000

Work in process inventory, January 1 ............ $25,000

Work in process inventory, December 31......... $45,000

Finished goods inventory, January 1 .............. $10,000

Finished goods inventory, December 31 ......... $5,000

Effective tax rate .................................... 35%

Required:

$ 500,000
50,000 direct labor hours (DLHs) 95,000 machine hours (MH) 55,000 direct labor hours (DLHs) 92,000 machine hours (MH)

What was the Predetermined Overhead Rate for Shaban Company? ____________________

What was the MOH variance for the year? ____________________

How much is Cost of Goods Manufactured for Shaban Company? ____________________

How much is Operating Income (before tax) for Shaban Company? ____________________

How much is Net Income (after tax) for Shaban Company? ____________________