During February, Cardella Manufacturing works on two jobs: A16 and B17. Summary data

concerning these jobs are as follows.

Manufacturing Costs Incurred

Purchased $54000 of raw materials on account

Factory labour $76000 plus $4000 employer payroll taxes

Manufacturing overhead exclusive of indirect materials and indirect labour $59800.

Assignment of Costs

Direct Materials : Job A16 $27000, Job B17 $21000

Indirect Materials : $3000

Direct Labour : Job A 16 $52000, Job B17 $26000

Indirect Labour : $2000

Manufacturing Overhead rate 80% of direct labour costs.

The company completed job A16 and sold it on account for $150000. Job B17 was only

partially completed.

Instructions

a) Journalized the February transactions in the sequence

b) Prepare a ledger

c) What was the amount of under or over-applied manufacturing overhead?