Wiley Plus Problem 5-5 The Martinez 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 $603,900 Estimated direct labour hours 54,900 During 2012 the Paine Company used 65,610 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 $40,610 99.680 199,780 694,740 630,660 Calculate the budgeted overhead rate for 2012. Budgeted overhead rate per DLH Determine the amount of underapplied or overapplied overhead for 2012. overhead is sl 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