Comparing job costs to management's expectations. Sierra Construction Company uses a job costing system. It applies overhead to jobs at a rate of 55 percent of direct labor cost.

On August 1.

the balance in the Work-in-Process Inventory account was S34.524.

It had the following jobs in process on August I:

Selected transactions for the month of August follow:
( 1 ) Materials issued: Job 480.

S682: Job 48 1 . S 4.200: Job 482.

S2.600: indirect materials.

S390: total. $7,872.

(2) Sierra assigned labor costs as follows: Job 478. $331; Job 479.

$2,651; Job 480.

S7.800: Job 481.

S5.891 : J ob 482.

SI. 720: indirect labor. S853; total, $19,246.

(3) It applies overhead for the month to jobs using an overhead rate of 55 percent of direct labor costs. Actual overhead for the month was SI 1.623 including the indirect materials and indirect labor noted in (1) and (2) above.

(4) It completed Jobs 478 and 479 in August.

Sierra Construction Company's management is concerned that costs are higher than anticipated. Managers had expected the cost of completed jobs to be as follows:

Job 478: S20.000. when complete Job 479: SI 3.000. when complete Job 480: SI 5.000. as of August 31 Job 48 1 : S 1 0.000. as of August 3 1 Job 482: S4.000. as of August 31 Compare the actual job costs to management's expected costs, and report your results.

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Job No. Total 478 (irrigation project) $19.530 479 (parking lot construction)... 9,410 480 (street repair) 5,584 Total $34,524