Analysis $[$LO$3-3,$ LO$3-4]$

Gitano Products uses job$-$order costing and applies overhead cost to jobs based on direct

materials used in production $($not on the basis of raw materials purchased$).$ Its predetermined

overhead rate is based on a cost formula that estimated $$113,100$ of manufacturing overhead for

an estimated allocation base of $$87,000$ direct material dollars to be used in production. The

company provided the following data for the just completed year:

Required: $$

Compute the predetermined overhead rate.

Compute the amount of underapplied or overapplied overhead.

Prepare a schedule of cost of goods manufactured. Assume all raw materials are used in

production as direct materials.

Compute the unadjusted cost of goods sold. Do not include any underapplied or overapplied

overhead in your answer.

Assume the $$39,000$ ending balance in Work in Process includes $$8,400$ of direct materials.

Given this assumption, supply the information missing below:

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Complete this question by entering your answers in the tabs below.

Compute the unadjusted cost of goods sold. Do not include any underapplied or overapplied overhe

Unadjusted cost of goods sold

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ompute the predetermined overhead rate.

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Underapplied