ssignment # 2 ACCT1350 Question 4 ( 10 Marks ) Sicily Company reported the following actual cost data for the yea Purchase of raw materials ( all direct ) Direct labour cost 285 BODY Manufacturing overhead costs 160 090 246000 Change in inventories Decrease in raw material $10 000 Decrease in work in process 8000 Decrease in finished goods 16090 Sicily Company used a 150 % predetermined overhead rate based on d irect labour cost . The rate was based on annual estimated overhead cost and direct labour cost of $252 000 and $168 000 respectively Required a Calculate the cost of goods manufactured . ( 3 Marks ) b . What was the cost of goods sold before adjusting for any under or overapplied overhead ? ( 2 Marks ) By how much was manufacturing overhead cost under or overapplied ? ( 2 Marks ) Vmuch ied ? 1 . Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold . ( 1 Mark ) e . Analyze the under or overapplied manufacturing overhead co sts calculated in part c above into two separate components : amount due to incorrect estimate of the annual manufacturing overhead costs and an amount due to incorrect estimate of the annual direct labour cost . ( 2 marks )