Sue Enterprises uses a normal job order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, Sue estimated the overhead for the year would be $720,000 and that production would use 90,000 machine hours. The following information relates to the month of August, when two jobs were worked on:

a. If actual overhead in August was $35,000, what was overhead allocated?

b. Assume Job 125 was completed. What was the cost of Job 125?

c. If Job 126 was both finished and sold, what was the cost of Job 126 that was transferred to cost of goods sold?

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Work in process, August 1 Direct materials cost Direct labor costs Direct labor hours Machine hours Job 125 $10,000 $15,000 $24,000 2,000 1,500 Job 126 $14,000 $20,000 $31,000 3,000 2,200