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Sunrise Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2013: direct materials costs, $ 650,000; direct labor costs, $ 3,000,000; and factory overhead costs applied $ 1,800,000.
1. Determine the company's predetermined overhead rate for year 2013.
2. Assuming that the company's $ 71,000 ending Goods in Process Inventory account for year 2013 had $ 20,000 of direct labor costs, determine the inventory's direct materials costs.
3. Assuming that the company's $ 490,000 ending Finished Goods Inventory account for year 2013 had $ 250,000 of direct materials costs, determine the inventory's direct labor costs and its overhead costs.
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