Campton Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2009: direct materials costs, $635,500; direct labor costs, $2,000,000; and factory overhead costs applied, $1,200,000.
1. Determine the company’s predetermined overhead rate for year 2009.
2. Assuming that the company’s $54,000 ending Goods in Process Inventory account for year 2009 had $13,000 of direct labor costs, determine the inventory’s direct materials costs.
3. Assuming that the company’s $337,435 ending Finished Goods Inventory account for year 2009 had $137,435 of direct materials costs, determine the inventory’s direct labor costs and its overhead costs.