Gitano Products operates a job-order costing system and appliesoverhead cost to jobs on the basis of direct materials used inproduction (not on the basis of raw materialspurchased). Its predetermined overhead rate was based on a costformula that estimated $120,400 of manufacturing overhead for anestimated allocation base of $86,000 direct material dollars to beused in production. The company has provided the following data forthe just completed year:

Purchase of raw materials	$	132,000
Direct labor cost	$	82,000
Manufacturing overhead costs:
Indirect labor	$	122,700
Property taxes	$	8,300
Depreciation of equipment	$	17,000
Maintenance	$	14,000
Insurance	$	8,000
Rent, building	$	32,000

	Beginning		Ending
Raw Materials	$	23,000	$	14,000
Work in Process	$	45,000	$	40,000
Finished Goods	$	71,000	$	60,000

Required:

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overheadfor the year.

3. Prepare a schedule of cost of goods manufactured for theyear. Assume all raw materials are used in production as directmaterials.

4. Compute the unadjusted cost of goods sold for the year. Donot include any underapplied or overapplied overhead in youranswer.

5. Assume that the $40,000 ending balance in Work in Processincludes $8,300 of direct materials. Given this assumption, supplythe information missing below: