Sicily Company reported the following actual cost data for the year: purchase of raw materials (all direct) 266,000 direct labour cost 160,000 manufacturing overhead costs 246,000 change in...

Sicily Company reported the following actual cost data for the year:
  purchase of raw materials (all direct)                                266,000

direct labour cost                                                                160,000

manufacturing overhead costs                                            246,000

change in inventories:

decrease in raw materials                                                     10,000

decrease in work in process                                                   8,000

decrease in finish goods                                                      16,000


Sicily Company used a 150% predetermined overhead rate based on direct 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.
b. What was the cost of goods sold before adjusting for any under or overapplied overhead?
c. By how much was manufacturing overhead cost under or overapplied?
d. Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.
e. Analyze the under or overapplied manufacturing overhead costs 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.