Baehr Company is a manufacturer with a fiscal year that runs from July 1 to June 30. The company uses a normal job-order cost ac- counting system for its production costs.
It uses a predetermined overhead rate based on direct labour hours to apply overhead to individual jobs. It prepared three budgets of over- head costs for the 2016 fiscal year as follows:

Although the annual ideal capacity is 150,000 direct labour hours, company officials have determined that 120,000 direct labour hours are the normal capacity for the year.
The following information is for November 2016 when Jobs X-50 and X-51 were completed:

Factory equipment costs

Instructions
(a) Calculate the predetermined rate to be used to apply overhead to individual jobs during the fiscal year.
(b) Prepare a schedule showing the costs assigned to each of Jobs X-50, X-51, and X-52.
(c) Calculate the cost of goods manufactured for November.
(d) Calculate the cost assigned to work in process on November 30.
(e) Determine whether overhead for November is under-applied or over-applied, and by what amount.

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Direct labour hours 100,000 120,000 140,000 Variable overhead costs $325,000 $390,000 $455,000 216,000 216,000 216,000 $541,000 $606,000 $671,000 Fixed overhead costs Total overhead Inventories, November 1 Raw materials and supplies Work in process (Job X-50) Finished goods 10,500 54,000 112,500 Purchases of raw materials and supplies Raw materials Supplies $135,000 15,000 Materials and supplies requisitioned for production Job X-50 Job X-51 Job X-52 Supplies 45,000 37,500 25,500 12,000 $120,000 Factory direct labour hours (DLH) Job X-50 Job X-51 Job X-52 3,500 DLH 3,000 DLH 2,000 DLH Labour costs Direct labour wages Indirect labour wages (4,000 hours) Supervisory salaries S 51,000 15,000 6,000 $ 72,000 Building occupancy costs (heat, light, depreciation) Factory facilities Sales offices Administration offices $ 6,500 1,500 1,000 $ 9,000 Power Repairs and maintenance Depreciation Other $ 4,000 1,500 1,500 1,000 S 8,000