Reference no: EM132589059

Question - Hershey Company uses a job order costing system and applies manufacturing overheads on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,595 for the year; direct labor was estimated to total $150,100.

	(1/1)	(12/31)
Raw Materials Inventory	$14,200	$9,400
Work in Process Inventory	$20,000	$22,700
Finished Goods Inventory	$42,500	$31,300

The following transactions have occurred during the year.

Raw materials purchases $111,000

Direct materials used $104,500

Direct labor $126,800

Indirect materials used $11,300

Indirect labor $16,300

Factory equipment depreciation $27,100

Factory rent $21,700

Factory utilities $9,100

Other factory costs $6,900

Required -

(a) Calculate the predetermined overhead rate.

(b) Calculate cost of goods manufactured.

(c) Calculate the over- or underapplied overhead. (Input the amount as positive value.)

(d) Calculate adjusted cost of goods sold.