The Moez Company uses a normal job order cost system. Other data:
• There are three jobs that pass through the two production departments.
• Job 401 and Job 402 were completed and sold during January.
• Job 403 was not completed as of December 31, 2022.
• The company considers under- or overallocated overhead immaterial.

a. What was the total allocated overhead during 2022?

b. What was the cost of work in process on December 31, 2022?

c. What was the value of the cost of goods sold account before any adjustment for over- or underallocated overhead?

d. What was the value of the cost of goods sold account after any adjustment for over- or underallocated overhead?

e. Why would a company use machine hours to assign overhead in one department and direct labor dollars in another department?

f. If the company sells the jobs at a 20% margin based on cost, what was the selling price of Job 401?

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Departments Department 1 Department 2 Department 1 Department 2 Direct labor cost: Work in Process 01/01/2022 Direct materials: Department 1 Department 2 Machine hours: Actual Direct Labor Rates Department 1 Department 2 $ 12 per hour $15 per hour Budget Overhead Driver Rates $10 per machine hour 150% of direct labor cost Actual Overhead Job 401 Job 402 Job 403 $20,000 $34,000 $11,000 800 130 $ 45,000 $ 60,000 Total $65,000 $40,000 $26,000 $50,000 $116,000 $5,000 $8,000 $12,000 $25,000 $9,000 $12,000 $7,000 $28,000 $11,000 $16,000 $9,000 $36,000 1,200 2,300 4,300 250 180 560