Wiley Plus Problem 5-5 The Blue Company uses a budgeted factory overhead rate to apply manufacturing overhead to production. The rate is based on direct labour hours. Estimates for the year 2012 are given below: Estimated manufacturing overhead Estimated direct labour hours $507,100 46,100 During 2012 the Paine Company used 57,260 direct labour hours. At the end of 2012, the company's records revealed the following information: Raw materials inventory Work-in-process inventory Finished goods inventory Cost of goods sold Manufacturing overhead $36,950 90,890 190,760 713,460 533,010 Calculate the budgeted overhead rate for 2012. Budgeted overhead rate per DLH Determine the amount of underapplied or overapplied overhead for 2012. overhead is $ If underapplied or overapplied overhead is treated as an adjustment to cost of goods sold, determine the cost of goods sold that would appear on the company's income statement. Cost of goods sold