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Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on machine - hours is used to apply

Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on machine-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows.
Machine-hours 180,000200,000240,000
Variable overhead costs $ 684,000 $ 760,000 $ 912,000
Fixed overhead costs 1,440,0001,440,0001,440,000
Total overhead $ 2,124,000 $ 2,200,000 $ 2,352,000
The expected volume is 200,000 machine-hours for the entire year. The following information is for March, when Jobs 302 and 304 were completed:
Inventories, March 1
Raw materials and supplies $ 90,500
Work in process (Job 302)197,300
Finished goods 497,800
Purchases of raw materials and supplies
Raw materials $ 1,362,200
Supplies 174,800
Materials and supplies requisitioned for production
Job 302 $ 603,500
Job 304508,300
Job 305101,700
Supplies 33,600
$ 1,247,100
Machine-hours (MH)
Job 3026,700 MH
Job 3046,600 MH
Job 3054,000 MH
Direct labor-hours (DLH)
Job 3029,200 DLH
Job 3044,000 DLH
Job 3052,400 DLH
Labor costs
Direct labor wages (all hours @ $32.00) $ 499,200
Indirect labor wages (1,100 hours)19,800
Supervisory salaries 28,200
Building occupancy costs (heat, light, depreciation, etc.)
Factory facilities $ 28,500
Sales and administrative offices 30,700
Factory equipment costs
Power $ 46,800
Repairs and maintenance 17,600
Other 22,200
$ 86,600
Required:
Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year.
(Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $12 per machine-hour. Use this amount in answering requirements [b] through [f], as needed.)
Compute the total cost of Job 302 when it is finished.
How much of factory overhead cost was applied to Job 305 during March?
What total amount of overhead was applied to jobs during March?
Compute actual factory overhead incurred during March.
At the end of the year, Sorrento Products had the following account balances:
Balance
Overapplied overhead $ 1,680,000
Work-in-process inventory 2,640,000
Finished goods inventory 960,000
Cost of goods sold 20,400,000
Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table.

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