Job Costing, normal versus actual, under/over applied overhead. (J. Watson) The following 600 information relates to the activities of King Ltd. for the year 2010.

The company uses normal costing and applies overhead on the basis of machine hours (MH). The company had calculated its overhead rate to be $4.25 per MH on the basis of 60,000 budgeted MH. Actual MH worked in the plant were 63,200.
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Advertising Costs $ 62,500 Beginning Work-in-Process $ 34,000 Direct Labour 320,000 Beginning Direct Materials 52,000 Indirect Labour 61,400 Factory Amortization 162,000 Factory Equipment Maintenance 13,300 Ending Work-in-Process 45,000 Ending Direct Materials 42,500 Factory Utilities 26,000 Office Amortization 13,000 Sales Commissions 24,000 Purchases of Direct Materials 156,000 Corporate Salaries 289,000 Factory Supplies 4,400 Insurance on Factory 22,600