The following information is available for the current year:
Cost of goods sold $292,000
Depreciation of factory equipment 25,200
Direct labor 64,750
Finished goods inventory, Beginning-year 45,000
Factory insurance 11,200
Factory utilities 16,800
Goods transferred from Work in Process 285,150
Inventory to Finished Goods Inventory
Indirect labor 8,400
Raw materials inventory, Beginning-year 4,200
Raw materials purchased 116,200
Raw materials used in production 121,800
(includes $7,000 of indirect materials)
Rent on factory building 22,400

Discuss the results of operations for the current year and provide your recommendations for increase or decrease in the overhead rate. Assume that the total sales of these products for the year, for cash and on account, was $450,000 and that costs for operating expenses, interest expenses and taxes equaled $110,000.