Connectta Lid manufactures furniture for computer work stations. Connectta uses a job costing system. The work in process inventory on 30 November consisted of the following jobs. Job. No. Description Units Total cost CC723 Computer caddy 20 000 $ 900 000 CH291 Chair 15 000 431 000 During December, machine hours and labour hours consisted of the following: PS812 Printer stand 25 000 250 000 Account Machine hours Total Labour hours $1 581 000 Labour cost CC723 12 000 11 600 $122 400 CH291 4 400 On 30 November, the company's finished goods inventory consisted of four items. PS812 19 500 3 600 14 30 43 200 200 500 DS444 14 000 12 500 138 000 Indirect labour 3 000 29 400 Item Quantity and unit cost Total cost Supervision Total 49 900 57 600 Computer caddy |7 500 units @ $64 each $ 480 000 45 000 $591 100 Chair Printer stand 19 400 units @ $35 each 679 000 21 000 units @ $55 each 1 155 000 The jobs completed in December and the unit sales for that month are as follows: Desk 11 200 units @ $102 each Tota 1 142 400 $3 456 400 Job No. CC723 Production items Quantity completed items Quantity shipped Computer caddy 20 000 Computer caddy 17 500 At the end of November, the balance in Connectta's materials inventory account, which includes both raw CH291 Chair DS444 15 000 Chair materials and purchased parts, was $668 000. Additions to and requisitions from the materials inventory Desk 5 000 21 000 Printer stand during December included the following. 18 000 Desk 6 000 Additions and requisitions Raw materials Purchased parts Required: Additions $242 000 $396 000 Requisitions Job CC723 51 000 104 000 1. Describe when it is appropriate for a company to use a job costing system. Job CH291 3 000 2. Calculate the balance in Connectta's work in process inventory account as at 31 December. 10 800 3. Calculate the cost of the chairs in Connectta's finished goods inventory as at 31 December. Job PS812 124 000 87 000 4. Actual manufacturing overhead incurred in December amounted to $252 000. Job DS444(5000 desks) 65 000 187 000 Calculate Connectta's overapplied or underapplied overhead for the year. 5. Explain two alternative accounting treatments for overapplied or underapplied overhead Connectta applies manufacturing overhead on the basis of machine hours. The company's manufacturing balances when using job costing system. overhead budget for the year totalled $4 500 000. The company planned to use 900 000 machine hours 6. Explain how activity-based costing could overcome the deficiencies inherent in the during this period, which is the firm's estimated practical capacity. Through the first 11 months of the year, existing costing system. a total of 830 000 machine hours were used, and actual manufacturing overhead amounted to $4 140 000