Badger Company is a job-order costing manufacturer that applies overhead on the basis of direct labor hours.

At the beginning of the year, to establish a predetermined overhead rate, Badger Company estimated a total of $4,500 in overhead costs and a total of 300 direct labor hours.

On March 1, there were two jobs in the process: Job 89 with a beginning balance of $2,300 and Job 90 with a beginning balance of $1,824. During March, three new jobs were started: Jobs 91, 92, and 93. The number of direct labor hours actually worked on each job during March was as follows:

 

By March 31, Jobs 89 and 91 were completed and sold. Job 90 was completed but not sold yet. The rest of the jobs remained in the process. On March 1, the beginning balance of the Finished Goods inventory account was $2,050. Badger Company prices its jobs at cost plus 40%.

1. What is the manufacturing overhead applied to Job 89?

A) $450

B) $750

C) $7,200

D) $12,000

2. What is the total manufacturing cost incurred by Job 90?

A) $3,626

B) $2,876

C) $5,450

D) $4,700

3. What is the balance in Work-In-Process on March 31?

A) $3,800

B) $2,875

C) $4,475

D) $9,925

4. What is the balance in Finished Goods on March 31?

A) $5,450

B) $7,500

C) $5,676

D) $17,175

Balance, 3/1 Direct materials Direct labor cost Direct labor hours Job 89 $3.900 13,000 5,600 400 hrs. Job 90 $15,800 17,000 4,500 300 hrs. Job 91 $9,000 29,400 3,240 180 hrs. Job 92 S 0 15,600 700 50 hrs. Job 93 S 0 8,200 3,220 230 hrs.