$12 of direct materials cost per unit and $9 of direct labor cost per unit. The company established the predetermined overhead
rate using the following predictions: estimated direct labor cost, $300,000, and estimated factory overhead, $375,000. The
company allocates factory overhead to its goods in process and finished goods inventories based on direct labor cost. During the
period, the company incurred these costs: direct materials, $535,000; direct labor, $290,000; and factory overhead applied,
1. Determine the predetermined overhead rate.
2. Compute the total cost of the two ending inventories. (Round "Cost per unit" answers to 2 decimal places.)
3. Compute cost of goods sold for the year (assume no beginning inventories and no underapplied or overapplied overhead).