In a shoe factory, the cost of janitorial services would be an indirect cost of the Custodial Services department but would be a direct cost of the Shoe Production Department for cost allocation purposes. A. True B. False

V Company uses job order costing and had a balance in Work-in-Process Inventory on January 1 of $141,800. Direct materials used in January were $174,500. Direct labor used in January was $162,500. Overhead is applied at a rate of 140 percent of direct labor dollars. The following jobs were completed in January: Job #84 had a total cost of $198,780. Job #85 had a total cost of $102,520. Job #86 had a total cost of $119,450. Job #87 had a total cost of $93,150. The only job not finished at the end of January was Job #88 that had $72,400 of material cost to date. How much overhead had been applied to Job 88?

• A. $70,000

• B. $67,420

• C. $35,100

• D. $94,390

• E. $120,000