Custom Job Inc (CJI) started using a job-order costing system using on a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000. The following information pertains to March of the current year:

	Job A	Job B	Job C	Total
Work-in-Process Inventory, Mar 1	$16,000	26,000	38,000	80,000
During the month
Materials Used	$4,000	4,800	7,200	16,000
Direct Labor	$2,400	3,600	4,000	10,000
Machine Hours	Mhr 400	700	900	2,000
Labor Hours	Lhr 120	180	200	500

Actual manufacturing overhead cost incurred in November was $61,000. At the end of the month Jobs A & C were completed. Assume Job A has already been delivered to customers.

1. Compute the predetermined overhead application rate. 3 Marks
2. Determine the total cost associated with each job 10 Marks
3. Calculate the ending Work-in-Process Inventory. 2 Marks
4. If Job As revenue was $50,000 cash, calculate the gross profit. 3 Marks
5. Assuming no beginning Finished Goods Inventory calculate the cost of ending Finished Goods Inventory. 2 Marks
6. How much was overhead overapplied or underapplied? How do we account for the difference ? 5 Marks