1 Job Order 2 Northwood Printing began operations in March 2021. 3 At the beginning of the month, Northwood established a predetermined overhead rate of $8 per direct labor hour, 4 and decided that any over/under-applied overhead would be proportionately applied to the correct accounts at the end of each month. 5 The company pays a direct labor wage of $15/hour. 6 7 In March, Northwood began two different jobs: 8 Job 1 - 500 t-shirts 9 Job 2 - 200 sweatshirts 10 11 Job I was still in process at month end; Job 2 had been finished and 60% of Job 2 units were sold for $70 each. 12 Additional information on production is as follows; 13 Direct materials costs incurred: Job 1 - $5,000; Job 2 - $6,000 14 Direct labor hours used: Job 1 - 200; Job 2 - 80 15 Overhead incurred: $3,360 16 Period costs: $600 17 18 What net income should Northwood report for the month? 19 20 21 22 23 24 25