(Comprehensive) The Steel Sentinel designs and manufactures perimeter fencing for large retail and commercial buildings. Each order goes through three stages: design, production, and installation. There were three jobs started and com¬ pleted during the first week in May 1998. There were no jobs in process at the end of April 1998. Information for the three departments for the first week in May follows:

Overhead is applied using departmental rates. Design and Installation use direct labor cost as the base, with rates of 40 percent and 90 percent, respectively. Production uses machine hours as the base, with a rate of $15 per hour.
Actual overhead in the Design Department for the month was $12,200. Actual overhead costs for the Production and Installation Departments were $7,200 and $3,850, respectively.

a. Determine the overhead to be applied to each job. By how much is the overhead underapplied or overapplied in each department? For the company?

b. Assume no journal entries have been made to Work in Process Inventory. Make all necessary entries to both the subsidiary ledger and general ledger accounts.

c. Calculate the total cost for each job.LO1

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DEPARTMENT JOB #2019 Direct labor hours Machine hours Direct labor cost DESIGN 100 PRODUCTION na 90 $ 4,250 na $10,200 INSTALLATION 70 na $1,260 Direct material JOB #2020 1,200 14,550 1,300 DESIGN PRODUCTION INSTALLATION Direct labor hours 85 na 80 Machine hours na Direct labor cost $ 8,670 300 $ 7,450 na $1,440 Direct material 1,025 33,600 4,600 JOB #2021 Direct labor hours Machine hours Direct labor cost DESIGN PRODUCTION 90 Direct material na $ 9,180 2,200 na 120 $ 2,950 29,000 INSTALLATION 410 na $1,900 1,300