Problem $7-56($Algo$)$ Analysis of Overhead Using a Predetermined Rate $($LO $7-2,3)$

Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on

machine$-$hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the

current year as follows.

The expected volume is $208,000$ machine$-$hours for the entire year. The following information is for March, when Jobs $302$ and $304$

were completed:

Required:

Required:

a$.$ Compute the predetermined overhead rate $($combined fixed and variable$)$ to be used to apply overhead to individual jobs during the

year.

$($Note: Regardless of your answer to requirement $[$a$],$ assume that the predetermined overhead rate is $$12\mathrm{.}80$ per machine$-$hour. Use

this amount in answering requirements $[$b$]$ through $[$f$],$ as needed.$)$

b$.$ Compute the total cost of Job $302$ when it is finished.

c$.$ How much of factory overhead cost was applied to Job $305$ during March?

d$.$ What total amount of overhead was applied to jobs during March?

e$.$ Compute actual factory overhead incurred during March.

f$.$ At the end of the year, Sorrento Products had the following account balances:

Show the overapplied overhead effect on the account balances $($final balances after allocation$)$ in the following table.