Lockheed Martin manufactures aerospace components using job costing. In October 2038, the company incurs the following costs for a specific job:

• Direct Materials: $5,000,000
• Direct Labor: $3,000,000
• Overhead: $2,500,000

Requirements:

• Allocate overhead using a predetermined overhead rate.
• Calculate the total job cost.
• Perform a variance analysis for material, labor, and overhead costs.
• Prepare a job cost sheet.
• Recommend improvements for cost control.