• What is the basis for the overhead predetermined rate? What is the rate? Based on the variance, should the predetermined overhead rate be increased or decreased?
• Regarding the cost of goods manufactured (COGM): what is the percentage of DM, DL, OH to total manufacturing cost for this period? What does it tell you about the company?
• Regarding the cost of goods sold (COGS) statement, which is based on the finished goods inventory account, how does the COGM compare the COGS. If these are similar, it indicates that.

Callahan Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 $ 32,400 23,400 11,700 $ 40,100 19,700 9,850 Balances on March 31 Direct materials (in March) Direct labor (in March) Applied overhead (March) Costs during April Direct materials Direct labor Applied overhead Status on April 30 138,400 91,800 ? Finished (sold) 225,100 158,500 ? Finished (unsold) $ 101,700 106,700 ? In process Additional Information a. Raw Materials Inventory has a March 31 balance of $88,500. b. Raw materials purchases in April are $503,400, and total factory payroll cost in April is $381,700. c. Actual overhead costs incurred in April are indirect materials, $51,700; indirect labor, $24,700; factory rent, $33,700; factory utilities, $20,700; and factory equipment depreciation, $54,400. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $630,000 cash in April