Weinrich Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2011, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $8,000 balance in the Raw Materials Inventory account.

During the month of January, the company began production on Jobs 26 and 27, and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $63,000 and $74,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of $40,000 on account.

2. Incurred direct factory labor costs of $24,000 and indirect factory labor of $7,500. Payroll will be paid next week.

3. Incurred manufacturing overhead costs as follows: indirect materials $10,000; requisitioned from raw materials; factory depreciation expense $12,000; and various other manufacturing overhead costs on account $11,000.

4. Assigned direct materials and direct labor to jobs as follows.

Job No.	Direct Materials	Direct Labor
25	$5,000	$3,000
26	$17,000	$12,000
27	$13,000	$9,000
Total	$35,000	$24000

5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job each month were as follows: Job No. 25, 200 direct labor hours; Job No. 26, 800 direct labor hours; and Job No. 27, 600 direct labor hours.

Instructions:

(a) Calculate the predetermined overhead rate for the year 2011, assuming Weinrich Manufacturing estimates total manufacturing overhead costs of $480,000, total direct labor costs of $300,000, and direct labor hours of 20,000 for the year.

(b) Prepare all ecessary journal entries based on above information.

(c) What is the balance in the raw materials and inventory, work in process and finished goods inventory at the end of the month?

(d) what is the amount of over or under applied overhead?