Ch08 Homework PDR Question 10 of 10 View Policies Current Attempt in Progress -/1 E Anthony and Michelle were not only best friends, they were coworkers-coworkers who were very passionate about their jobs and their company! The Job Shop, the clever name of the company where they work, produces and sells several different styles of reading glasses. Today, on The Job Shop floor, Anthony and Michelle are discussing the styles of readers that are currently in production. Anthony: You see this job over here, Michelle? This job (#AA110) was started last month, but now it's finally ready to ship. I heard that most of the order is already sold, in fact. Michelle: Really? I heard something similar about the job on the other side of the plant (#AA111). That is, I heard most of it is already sold, too. But, because that job just started at the beginning of this month. I bet it'll be more profitable because it didn't have to sit in processing as long Anthony: Michelle. I don't think that's how this works. Remember our manager telling us that we need to keep our machine hours down to a minimum? The reason is because we use machine hours to budget and apply our MOH costs to our products. If the job is just sitting there, waiting for the next processing step to be completed, it is not using machine hours, so more MOH costs shouldn't be applied because hours are not being used. Anthony is correct in that only one job (#AA110) is still in process on January 1. 2025. The job cost sheet for Job #AA110 shows that $7,500 of direct material had been used on the job in 2024. Direct labor used on the job in 2024 was $3,150, and MOH applied to the job in 2024 was $5,550. Michelle is also correct as Job #AA111 was started in January. But two other jobs were freshly started in January, too: #AA112, #AA113 Material cost, labor cost, and machine hour usage for January is as follows.