Your Company is a manufacturing facility that produces highend boots. The actual manufacturing overhead cost for the previous year was $750,000 and the total direct labor hours incurred were 40,000 hours. The estimated manufacturing overhead cost for the current year are $780,000 and the estimated direct labor hours are 39,000. Overhead is applied using direct labor hours as the activity. Salaries and wages are run on a single payroll. Of the total 70% is direct labor, 20% are period costs and 15% are indirect labor. 15% of the materials used in production are classified as indirect materials. The wage rate is $25 per direct labor hour. over or underapplied overhead is closed to cost of goods sold. Below is a list of costs and other information related to the current year: $ a. building and equipment depreciation - 100% manufacturing 180,000 b. raw material inventory 1-1-2015 250,000 c. raw material purchases 1,000,000 d. raw material inventory 12-31-15 50,000 e. delivery costs - finished goods 10,000 f. finished good inventory 1-1-15 220,000 g. finished goods inventory 12-31-15 225,000 h. insurance costs; 80% production the balance period costs 60,000 i. property taxes ; 80% production the balance period costs 40,000 j. maintenance costs; all production 35,000 k. utilities; 90% production the balance period costs 100,000 l. interest expense - period cost 20,000 m. salaries and wages 1,400,000 n. other manufacturing costs 80,000 o. work-in-process inventory 1-1-15 70,000 p. work-in-proces inventory 12-31-15 75,000 q. sales revenue 3,500,000 r. sales commissions 2% of sales dollars s. legal fees all period cost 25,000 Requirements: 1. compute the predetermined overhead rate. 2. prepare a statement of cost of goods manufactured 3. prepare a statement of cost of goods sold. 4. prepare an income statement. The income tax rate is 25%. 5. compute the prime costs 6. compute the conversion costs. 7. if 40% of the manufacturing overhead costs are variable what is the total variable costs? 8. if 75,000 units were produced what was the cost per unit? What was the variable cost per unit? the fixed cost per unit? 9. if 100,000 units were produced what would be the fixed cost per unit?