Johnson Schuman owns and operates a plumbing and heating company. Two overhead rates are used in applying overhead costs to the jobs. One rate is based on direct labor hours, and the other is based on machine hours. The machine is a backhoe used in digging service lines. Overhead costs of operating the backhoe are kept separately so that only the jobs requiring the use of the backhoe are charged an overhead rate per machine hour. For the year, $126,000 of general overhead costs were budgeted for 6,000 direct labor hours; and $21,600 of backhoe-related overhead costs were budgeted for 1,800 machine hours (hours of backhoe operation). 

On February 1, the cost in Work in Process is $440 and consists of only one job, the job for W. Hartenstine. Costs and other data pertaining to jobs worked on during February are:

All orders were finished during February with the exception of the Tellerico order which is still in process.

Required:
1. Compute an overhead rate per direct labor hour and an overhead rate per machine hour.
2. Prepare a summary of costs incurred for work performed in February.
3. Determine the cost of work completed during February.

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W. Hartenstine C. Lasher P. Romero M. Tellerico All other jobs Totals Direct Materials Direct Labor Machine Labor Hours Hours $ 135 $ 320 16 246 560 28 230 365 12 5 84 60 3 842 14,000 500 160 $1,537 $15,305 559 165