Reword the following answer: Let's break down the solution to each requirement step-by-step: ### Required 1: Compute the Predetermined Overhead Rate The predetermined overhead rate is calculated using the formula: \[ \text{Predetermined Overhead Rate} = \left( \frac{\text{Estimated Manufacturing Overhead}}{\text{Estimated Direct Material Dollars}} ight) \times 100\% \] Given: - Estimated Manufacturing Overhead = $112,800 - Estimated Direct Material Dollars = $94,000 \[ \text{Predetermined Overhead Rate} = \left( \frac{112,800}{94,000} ight) \times 100\% = 120\% \] ### Required 2: Compute the Amount of Underapplied or Overapplied Overhead First, calculate the actual overhead incurred: - Indirect labor = $96,900 - Property taxes = $8,500 - Depreciation of equipment = $16,000 - Maintenance = $13,000 - Insurance = $9,600 - Rent, building = $39,000 Total Actual Overhead = $96,900 + $8,500 + $16,000 + $13,000 + $9,600 + $39,000 = $183,000 Next, calculate the applied overhead using the predetermined rate: \[ \text{Applied Overhead} = \text{Predetermined Overhead Rate} \times \text{Actual Direct Materials Used} \] Assuming all raw materials purchased are used: - Raw Materials Used = Beginning Inventory + Purchases - Ending Inventory - Raw Materials Used = $30,000 + $132,000 - $12,000 = $150,000 \[ \text{Applied Overhead} = 120\% \times 150,000 = 1.2 \times 150,000 = $180,000 \] Underapplied Overhead = Actual Overhead - Applied Overhead = $183,000 - $180,000 = $3,000 ### Required 3: Prepare a Schedule of Cost of Goods Manufactured 1. **Direct Materials Used**