Item 9

Item 9

Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 98,000 and estimated factory overhead is $588,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished.

September 1, inventories
Materials inventory	$	8,900
Work-in-process inventory (All Job A)		34,000
Finished goods inventory		74,000
Material purchases		125,000
Direct materials requisitioned
Job A		79,000
Job B		40,500
Direct labor hours
Job A		5,600
Job B		2,100
Labor costs incurred
Direct labor ($8.00/hour)		61,600
Indirect labor		14,900
Supervisory salaries		7,400
Rental costs
Factory		8,400
Administrative offices		3,200
Total equipment depreciation costs
Factory		9,600
Administrative offices		3,700
Indirect materials used		13,400

Required:

1. What is the total cost of Job A?

2. What is the total factory overhead applied during September?

3. What is the overapplied or underapplied overhead for September?