WZ company manufactures oflice chairs. The company applics manufacturing overhead on the hasis af direct$-$Jabor hours. The compsiny's budget for the current year:

Estimated total manufacturing overhead Estimated total direct$-$labor hours

$$63,000$

$$3,000$

The transactions during the year as follows:

a$.$ Raw materials were purchased on account for $$18,000.$

b$.$ $$22,500$ cost of direct materials were requisioned from the store room and used in production. $$200$ cost of indirect materials were requisioned from the store room and used in production.

c$.$ An analysis of employee time tickets revealed the following: $($all paid in cash$)$ Direct labor cost $$68,000$ Indirect labor cost $$26,000$

d$.$ Depreciation of factory building and equipment amounted $$24,000,$

e$.$ Rent paid for the warehouse was $$4,800.$

f$.$ Utility costs for the factory incurred amounted $$2,400.$

g$.$ The insurance cost covering factory operations was $$6,200.$ The insurance policy had been prepaid.

h$.$ The cost of wages for sales and administrative personnel paid amounted to $$16,000.$

i$.$ Depreciation on administrative office equipment and space $$8,000.$

j$.$ Other selling and administrative expenses paid amounted to $$2,000.$

k$.$ Actual direct$-$labors hours worked during the year amounted to $3,100$ hours. The company applied manufacturing overhead to jobs. $($Find the amount and record$)$

Finished goods that cost $$101,800$ to manufacture according to their job cost sheets were transferred to the warchouse.

in$.$ Sales made in cash during the year amounted to $$125,750.$

n$.$ The total cost to manufacture to those goods sold according to their job cost sheets was $$82,500.$

The talances of sefected accounts at the beginning of the year:

kaw Maferial

Waw Mafcrial

$$12,400$

$15,200$

$36,000$

Required:

Caloutate the compuriy $\text{'}$s predetermined overhead rate.

Prepane jourmat empries to predoremincd overhead rate.

Post to the selected accounts $($not all, Justactions or the year.

Calculate the overapplled or undemapplied overheas fort he year. Prepare the journal entry to elose this balance to Cost of Goods Sold and post. Prepare a Schedule of Cost of Gold and post. the year.

Sold and Income Statement for