Accuzeit is a small New England company that manufactures custom clocks. It uses a job costing system that applies factory overhead on the basis of direct labor-hours. Budgeted factory overhead for the year 2010 was $527,805, and management budgeted 31,700 direct labor-hours. Accuzeit had no materials, work-in-process or finished goods inventory at the beginning of April. These transactions were recorded during April:

a. April insurance cost for the manufacturing property and equipment was $1,495. The premium had been paid in January.

b. Completed goods costing $62,390 manufactured during the month.

c. Recorded $1,025 depreciation on an administrative asset.

d. Purchased 21 pounds of high-grade wood fasteners on account at $15 per pound (indirect material).

e. Paid factory utility bill, $6,510 in cash.

f. Incurred and paid payroll costs of $80,300. Of this amount, $19,600 were indirect labor costs; direct labor personnel earned $20 per hour on average.

g. Incurred and paid other factory overhead costs, $5,770.

h. Purchased 2,100 unfinished mahogany blanks on account at $11 per blank.

i. Made sales on account in August, $56,410. The cost of goods sold was $47,860.

j. Requisitioned 1,495 mahogany blanks and 13 pounds of fasteners for production.

k. Incurred miscellaneous selling and administrative expenses, $5,660.

l. Incurred $3,505 depreciation on manufacturing equipment for April.

m. Paid advertising expenses in cash, $2,350.

n. Applied factory overhead to production on the basis of direct labor-hours.

Required

1. Compute the firm’s predetermined factory overhead rate for the year.

2. Prepare journal entries to record the April events.

3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30.

4. Prepare a schedule of cost of goods manufactured and sold.

5. Prepare the income statement for April.