Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $57,000 and its total manufacturing overhead cost to be $91,200.
Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in the second requirement.
predetermined overhead rate is 160 % of direct labor
Over-applied by $12,900.
5. Prepare a brief income statement for the company.
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