8 Problem 4-44 Application of Overhead [LO 4-3, 4-4, 4-5] 0.62 points The following information applies to the O'Donnell Company for March production. There are only two jobs (X and Y) in production in March. Skipped a. Purchased direct materials and indirect materials with the following summary of receiving reports: eBook Material A Material B Indirect materials Total $18,500 13,250 4,250 $36,000 Print References b. Issued direct materials and indirect materials with this summary of requisitions: Job x $ 8,500 3,500 $ 12,000 Job Y Material A Material B Subtotal Indirect materials Total Total $25,500 12,000 $37,500 40,250 $ 77,750 $17,000 8,500 $25,500 c. Factory labor incurred is summarized by these time tickets Job x Job y Indirect labor Total $23,000 15,500 29,250 $67,750 d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows: Utilities Depreciation Insurance Total $ 3,500 19,000 3,000 $25,500 e. Factory overhead costs were applied to jobs at the predetermined rate of $48.50 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours. f. Job X was completed; Job Y was still in process at the end of March. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March Required 1. Calculate the total manufacturing cost for Job X and Job Y for March. 2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment. 1. Total manufacturing costs Job X Total manufacturing costs Job Y 2. Cost of goods sold e. Factory overhead costs were applied to jobs at the predetermined rate of $48.50 per machine hour. Job X incurred 1,100 machine hours; Job Y used 800 machine hours. f. Job X was completed; Job Y was still in process at the end of March. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March Required: 1. Calculate the total manufacturing cost for Job X and Job Y for March. 2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment. 1. Total manufacturing costs Job X Total manufacturing costs Job Y Cost of goods sold