Johnson inc. is a job order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 93,000 and estimated factory overhead is $511,500. The following information is for September of the current year. Job A was completed during September, and job B was started but not finished.
September 1, Inventories
Materials inventor $8,400
Work in process (All Job A) 33,000
Finished goods inventory 71,500
Material Purchases 117,500
Direct materials requisitioned
Job A 74,000
Job B 38,000
Direct Labor Hours
Job A 5,100
Job B 4,400
Labor costs incurred
Direct labor ($7.50) 71,250
indirect Labor 14,400
Supervisor Salary 6,900
Rental Costs
Factory 7,900
Administrative offices 2,700
Total Equipment depreciation cost
Factory 8,850
Administrative offices 2,950
Indirect materials used 12,900
Required:
What is the total cost of Job A? (Do not round intermediate calculations)
What is the total factory overhead applied during September? (Do not round intermediate calculations)
What is the over applied or under applied overhead for September