A job order costing system is used when a company produces a product or provides a service that is unique-that is, the cost of one product or service is different than that of another. A Job order costing must be able to identify each individual job and accumulate its costs separately from the costs of other jobs. In manufacturing, the jobs may be for a single item or a batch of similar items. The flowchart illustrates the flow of costs into Work in Process and Finished Goods in a job order costing system. Cost Flows in a Job Cost System Materials Work in Process-Assembly Dept Work in Process- Test & Packaging Dept Finished Goods Beg Inventory + Purchases Cost of Units transferred out Cost of Units transferred out Beg Inventory + Cost of units transferred in Direct Materials Cost of Goods Sold Job#1, Job#2 Job#3, Job4 Beg Inventory + Direct Materials + Direct Labor Job#1, #2, #3,#4 + Factory Overhead applied Job#1,#2 #3,#4 Job#1, Job42 Job#3 Beg Inventory + Cost of units transferred in + Direct Labor Job#1, #2, #3 + Factory Overhead applied Job#1, #2, #3 Job#1 End Inventory End Inventory Job#2, #3 End Inventory Job#1 End Inventory Job44 Factory Overhead Actual Factory Overhead: + utilities expense + depreciation of machinery + supplies Factory overhead applied Costs to date by job are shown. Job#1 Job#2 Job#3 Job#4 Direct materials $730 $600 $410 Direct labor 90 90 80 Overhead 140 120 110 $960 $810 $600 Use the flow chart to complete the following sentences. $360 110 165 $635 The ending Inventory balance in the Work in Process-Assembly Dept is $ The cost of goods transferred into the Work in Process-Test & Packaging Dept is $ The cost of goods transferred out of the Work in Process- Test & Packaging Dept Dept is s The ending inventory balance in the Work in Process- Test & Packaging Dept is A materials requisition is the primary document for accumulating all costs related to a specific job. Materials are recorded to jobs based on a materials requisition and labor is charged to jobs based on a timecard, or labor accumulation system. Overhead is applied based on a predetermined overhead rate The rate may be based on direct labor hours, machine hours, or another activity. It may be a dollar amount or a percentage, Assume the company has estimated overhead costs for the coming year of $1,500,000 and expected activity is 100,000 direct labor hours. The formula for calculating the overhead rate is: Overhead rate = Estimated overhead costs = Activity direct labor hours per direct labor hour At the beginning of the year, Carentan Company estimated the following: Machining Department Assembly Department Total Overhead $332,500 $272,000 $604,500 Direct labor hours 110,000 170,000 280,000 Machine hours 190,000 190,000 Carentan uses departmental overhead rates. In the machining department, overhead is applied on the basis of machine hours. In the assembly department, overhead is applied on the basis of direct labor hours. Actual data for the month of January are as follows: Machining Department Assembly Department Total Overhead $21,750 $20,500 $42,250 Direct labor hours 10,000 12,000 22,000 Machine hours 13,000 13,000 Complete the following table: If required, round your answers to the nearest cent. Assembly Department Machining Department $ per machine hour Predetermined overhead rate $ per direct labor hour Overhead applied in January Variance Over-or-underapplied