Problem - Pendarvis Company uses a job-order costing system and has the following information for the first week of June:
1. Direct labor and direct materials used:
Job No. Direct Material Direct Labor Hours
498 $1,500 116
506 960 16
507 415 18
508 345 42
509 652 24
511 308 10
512 835 30
Total $5,015 256
2. The direct labor wage rate is $4 per hour.
3. The overhead rate is $5 per direct labor hour.
4. Actual overhead costs for the week, $1,480.
5. Jobs completed: Nos. 498, 506, and 509.
6. The factory had no work in process at the beginning of the week.
Required:
a. Prepare a summary that will show the total cost assigned to each job.
b. Compute the amount of overhead over- or underapplied during the week.
c. Calculate the cost of the work in process at the end of the week.