Problem 7-56 (Static) 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. Machine-hours 180, 000 200, 000 240, 000 Variable overhead costs $ 684, 000 $ 760, 000 $ 912, 000 Fixed overhead costs 1, 440, 000 1, 440, 000 1, 440, 000 Total overhead $ 2, 124, 000 $ 2, 200, 000 $ 2, 352, 000 The expected volume is 200,000 machine-hours for the entire year. The following information is for March, when Jobs 302 and 304 were completed: Inventories, March 1 Raw materials and supplies $ 90, 500 Work in process (Job 302) 197, 300 Finished goods 497, 800 Purchases of raw materials and supplies Raw materials $ 1, 362, 200 Supplies 174, 800 Materials and supplies requisitioned for production Job 302 $ 603, 500 Job 304 508, 300 Job 305 101, 700 Supplies 33, 600 $ 1, 247, 100 Machine-hours (MH) Job 302 6, 700 MH Job 304 6, 600 MH Job 305 4, 000 MH Direct labor-hours (DLH) Job 302 9, 200 DLH Job 304 4, 000 DLH Job 305 2, 400 DLH Labor costs Direct labor wages (all hours @ $32.00) $ 499, 200 Indirect labor wages (1, 100 hours) 19, 800 Supervisory salaries 28, 200 Building occupancy costs (heat, light, depreciation, etc. ) Factory facilities $ 28, 500 Sales and administrative offices 30, 700 Factory equipment costs Power $ 46, 800 Repairs and maintenance 17, 600 Other 22, 200 86, 600