Find direct materials costs in ending work in process

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Tasty Bakery applies overhead based on direct labor costs. The company reports the following costs for the year: direct materials, $790,000; direct labor, $4,400,000; and overhead applied, $2,640,000.

Problem 1. Determine the company's predetermined overhead rate for the year.

Problem 2. The ending balance of its Work in Process Inventory account was $85,000, which included $34,000 of direct labor costs. Determine the direct materials costs in ending Work in Process Inventory.

Reference no: EM132984373

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