Syto Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $800,000 of manufacturing overhead for an estimated allocation base of $500,000 direct materials dollars to be used in production. The company has provided the following data for the just ended completed year: Required: a. Compute the predetermined overhead rate for the year. (2 marks) b. Compute the amount of under-applied or over-applied overhead for the year. (4 marks) c. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (6 marks) d. Compute the unadjusted cost of goods sold for the year. DO not include any under-applied or over-applied overheard in your answer. What options are available for disposing off under-applied and over-applied overhead? (4 marks) e. Assume that the $80,000 ending balance in Work in Process included $24,000 direct materials. Given this assumption, supply the information missing below: (4 marks)
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