90 91 Exercise 3 (12 Points) Durango Company employs a job order cost accounting system and keeps perpetual inventory records. There was no work in process on December 1, 2020. Finished goods inventory consisted of Job 88, which cost $25,000. 1. Direct materials, labor and machine hours for the month: Direct Materials Machine Job No. Requisitioned Direct Labor Hours used $ 15,000 $ 20,000 2,000 13,000 17,000 1,700 92 18,000 22,000 2,200 93 8,000 13,000 1,300 Total $ 54,000 $ 72,000 7,200 2. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on $5 per machine hour. 3. Actual manufacturing overhead costs incurred during the month amounted to $32,000. 4. Job 90, 91 and 93 consisting were completed during the month. 5. Jobs 88, 90, and 93 were sold on account for $145,000. Instructions: Answer the following questions. Show supporting computations to receive credit. 1. Compute the total cost of Jobs 90, 91 and 93. CO 2. Compute the amount overhead applied to job 92. 3. Determine the balance in Work-in-Process Inventory at the end of the month. 4. Determine the balance in Finished Goods Inventory at the end of the month. Exercise 4 (5 Points) Darnell is confused. He does not understand why rent on his apartment is a fixed cost and the rent on an Enterprise rental truck is a mixed cost. Explain the difference to Darnell