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Using Job Order Costing w/ Pre-determined Overhead Application Try-It-Again, Inc. is a park bench manufacturer. The company uses labor hours as a basis to apply

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Using Job Order Costing w/ Pre-determined Overhead Application Try-It-Again, Inc. is a park bench manufacturer. The company uses labor hours as a basis to apply factory overhead. At the beginning of the year, the company has estimated annual overhead costs to be $1,000,000 based on direct labor hours of 649,350 . During the year, the company actually produced, and completed, 100,000 benches using $5.00 of direct material, per bench, and 6 direct labor hours, per bench, at a rate of $7.50 per direct labor hour. a) Determine cost, per park bench, calculated during the year. At the end of the year, the company determined it actually incurred expenses for Indirect Labor of $450,000, Small Tools Expense of $50,000, Depreciation on Corporate Offices of $80,000, Factory Depreciation Expense of $175,000. Production Utility Costs of $65,000. Property Taxes on manufacturing facility of $125,000 and Executive Salaries $2,300,000. Additionally, the company paid a cash dividend of $30,000. b) determine the value of factory overhead over allocation or under allocation, if any, at the end of the year c) explain the effects of the cost of sales and net income for the period based on your calculated over or under allocation

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