Lubbock Manufacturing Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, $60,000; estimated materials costs, $50,000; estimated direct labor costs, $60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for the month of November was $80,000, and the production statistics on November 30 are as follows:

Required:
1. Compute the predetermined rate, based on the following:
a. Direct labor cost
b. Direct labor hours
c. Machine hours
2. Using each of the methods, compute the estimated total cost of each job at the end of the month.
3. Determine the under- or over-applied factory overhead, in total, at the end of the month under each of the methods.
4. Which method would you recommend?Why?

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Materials Direct Labor Direct Labor Machine Date Jobs Hours Completed Job 101. 102 103.... 104*.. 105 106 Total Costs 5,000 7,000 8,000 9,000 10,000 11,000 ..$50,000 Costs 6,000 12,000 13,500 15,600 29,000 2,400 $78,500 Hours 1,000 2,000 2,500 2,600 4,500 400 13,000 3,000 Nov. 10 3,200 Nov. 14 4,000 Nov. 20 3,400 In process 6,500 Nov. 26 1,500 In process 21,600