Whitlock Manufacturing uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct materials costs to apply overhead to individual jobs. The company prepared an estimate of overhead costs at different volumes for the current year as follows:

t materials costs	$ 309,000	$ 405,400	$ 509,000
Variable overhead costs	$ 444,960	$ 588,960	$ 732,960
Fixed overhead costs	384,000	384,000	384,000
Total overhead	$ 828,960	$ 972,960	$ 1,116,960

Whitlock expects to spend $405,400 in direct materials costs over the entire year. The following information is for May, when Jobs WM-52 and WM-53 were completed:

Inventories, May 1
Materials and supplies	$ 2,720
Work in process (Job WM-52)	14,100
Finished goods	28,700
Purchases of materials and supplies
Materials	$ 34,400
Supplies	3,920
Materials and supplies requisitioned for production
Job WM-52	$ 11,900
Job WM-52	9,520
Job WM-54	6,520
Supplies	1,620
	$ 29,560

Factory direct labor-hours (DLH)
Job WM-52	900 DLH
Job WM-53	750 DLH
Job WM-54	500 DLH

Labor costs
Direct labor wages (all hours @ $24.00)	$ 51,600
Indirect labor wages (500 hours)	8,500
Supervisory salaries	9,120
Building occupancy costs (heat, light, depreciation, etc.)
Factory facilities	$ 23,100
Sales and administrative offices	11,100
Factory equipment costs
Power	$ 12,600
Repairs and maintenance	8,620
Other	12,100
	$ 33,320

Required:

A.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 225% of direct materials cost. Use this rate in answering requirements [b] through [f], as needed.)

predetermined overhead rate

% of direct material

B. Compute the total cost of Job WM-52 when it is finished.

C. How much of factory overhead cost was applied to Job WM-54 during May?

D. What total amount of overhead was applied to jobs during May?

E. Compute actual factory overhead incurred during May.

F. At the end of the year, Whitlock Manufacturing had the following account balances:

Underapplied overhead	$ 49,200
Work-in-process inventory	21,000
Finished goods inventory	182,300
Cost of goods sold	1,821,900

Assuming that the underapplied overhead is not material, show the new account balances in the following table.

Underapplied overhead
Work-in-process inventory
Finished goods inventory
Cost of goods sold