Question Details

Calculate the predetermined overhead rate



1.	Perrault Inc uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $75,000 for the year; direct labor was estimated to total $150,000.
  
	1/1	12/31
Raw materials inventory	$10,000	$13,000
Work in process inventory	$22,000	$19,000
Finished goods inventory	$34,000	$41,000
The following transactions have occurred during the year.		
Raw materials purchases		$100,000
Direct materials used		$91,000
Direct labor		$145,000
Indirect materials used		$6,000
Indirect labor		$15,000
Factory equipment depreciation		$24,000
Factory rent		$18,000
Factory utilities		$7,500
Other factory costs		$6,500

a. Calculate the predetermined overhead rate
b. Calculate cost of goods manufactured
c. Calculate the over- or underapplied overhead
d. Calculate adjusted cost of goods sold 



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