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1 . Biltz Company uses a predetermined manufacturing overhead rate based on direct labor hours to allocate ( apply or charge ) manufacturing overhead costs to jobs . During the year , the company actually incurred manufacturing overhead costs of $ 582,000 and 135,000 direct labor hours were worked . The company originally estimated that it would incur $ 525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked .

2 . The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company :

Additional data :

1 ) Actual manufacturing overhead for January amounted to $ 62,000 . 2 ) Total direct labor cost for January was $ 63,000 . 3 ) The predetermined manufacturing overhead rate is based on direct labor cost . The budget for the year called for $ 250,000 of direct labor cost and $ 350,000 of manufacturing overhead costs . 4 ) The only job unfinished on January 31 was Job No . 151 , for which total direct labor charges were $ 5,200 ( 800 direct labor hours ) and total direct material charges were $ 14,000 . 5 ) Cost of direct materials placed in production during January totaled $ 123,000 . There were no indirect material requisitions during January .