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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

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 91,000 and estimated factory overhead is $591,500. 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$8,200

Work-in-process inventory (All Job A)32,600

Finished goods inventory70,500

Material purchases114,500

Direct materials requisitionedJob A72,000

Job B37,000

Direct labor hoursJob A4,900

Job B4,200

Labor costs incurred

Direct labor ($8.50/hour)77,350

Indirect labor14,200

Supervisory salaries6,700

Rental costs

Factory7,700

Administrative offices2,500

Total equipment depreciation costsFactory8,550

Administrative offices2,650

Indirect materials used12,700

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?

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