Lucien Ltd. manufactures custom-made doors and uses a normal job costing system to allocate overhead costs, based on labour hours. The direct labour rate is $40 per hour. Direct materials used in the production amounted to $145,000. The additional cost information for last year is as follows:

Inventory balances were:

REQUIRED

A. Calculate the applied manufacturing overhead costs and the direct labour costs for last year.
B. Calculate (1) the total manufacturing costs for last year, (2) the cost of goods manufactured for last year, and (3) the cost of goods sold.
C. Is the overhead over- or underapplied? Prepare an adjusting entry for the difference, using the proration method.

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Budgeted labour hours Actual labour hours Budgeted manufacturing overhead Actual manufacturing overhead 8,000 $240,000 7,500 $255,000 January 1 Work-in-Process Finished Goods December 31 $120,000 155,000 $155,000 175,000