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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

	April 30				May 31
Inventories
Raw materials	$	51,000			$	68,000
Work in process		11,800				24,500
Finished goods		71,000				51,600
Activities and information for May
Raw materials purchases (paid with cash)						226,000
Factory payroll (paid with cash)						377,000
Factory overhead
Indirect materials						31,000
Indirect labor						96,000
Other overhead costs						136,000
Sales (received in cash)						1,560,000
Predetermined overhead rate based on direct labor cost						70	%

Determine whether there is over or underapplied overhead.

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system April 3e May 31 Inventories Raw materials Work in process Finished goods $ 68,000 24, 500 51,600 $ 51,000 11,800 71,000 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 226,000 377,000 Indirect materials Indirect labor Other overhead costs 31,000 96,000 136,000 1,560,000 Sales (received in cash) Predetermined overhead rate based on direct labor cost 70% Determine whether there is over or underapplied overhead Factory Overhead 96,000 31,000 ndirect labor 263,900 Applied overhead ndirect materials 136,900 Overapplied overhead

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