Job Costing Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead ratebased on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct laborhours are 95,000 and estimated factory overhead is $617,500. The following information is for Septemberof the current year. Job A was completed during September, and Job B was started but not finished.[LO 4-3, 4-4, 4-5]September 1, InventoriesMaterials Inventory $ 7,500Work-in-Process Inventory (All Job A) 31,200Finished Goods Inventory 67,000Material purchases 104,000Direct materials requisitionedJob A 65,000Job B 33,500Direct labor hoursJob A 4,200Job B 3,500Labor costs incurredDirect labor ($8.50/hour) 65,450Indirect labor 13,500Supervisory salaries 6,000Rental costsFactory 7,000Administrative offices 1,800Total equipment depreciation costsFactory 7,500Administrative offices 1,600Indirect materials used 12,000Required1. What is the total cost of Job A?2. What is the total factory overhead applied during September?3. What is the overapplied or underapplied overhead for September?
based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor
hours are 95,000 and estimated factory overhead is $617,500. The following information is for September
of the current year. Job A was completed during September, and Job B was started but not finished.
[LO 4-3, 4-4, 4-5]
September 1, Inventories
Materials Inventory $ 7,500
Work-in-Process Inventory (All Job A) 31,200
Finished Goods Inventory 67,000
Material purchases 104,000
Direct materials requisitioned
Job A 65,000
Job B 33,500
Direct labor hours
Job A 4,200
Job B 3,500
Labor costs incurred
Direct labor ($8.50/hour) 65,450
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs
Factory 7,000
Administrative offices 1,800
Total equipment
Factory 7,500
Administrative offices 1,600
Indirect materials used 12,000
Required
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the overapplied or underapplied overhead for September?
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