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Johnson Incorporated is a job order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual
Johnson Incorporated 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 95,000 and estimated factory overhead is $617,500. 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 Work-in-process inventory (A11 Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($8.50/hour)) Indirect labor $ 7,500 31,200 67,000 104,000 65,000 33,500 4,200 3,500 65,450 13,500 6,000 Factory 7,000 Administrative offices) 1,800 Total equipment depreciation costs Factory 7,500 Adeinistrative offices 1,600 12,000 Supervisory salaries Rental costs Indirect materials used 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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