Madison Millworks manufactures custom wooden chairs. Madison uses a job order costing system to track the cost of each custom chair order. They cost each order with actual material used and actual direct labor incurred. Overhead is estimated annually and charged to each job based on an overhead rate using machine hours. For 2018, annual overlead and machine hours were estimated to be: $300,000 and 20,000 machine hours, respectively. Annual Estimated Direct Labor Hours are 4,000 at a panned hourly rate of $20/hr. During the month of December they completed two jobs, Job D12-1 and Job D12-2 and started work on job D12-3. No other jobs were started or completed in December. No purchases of Raw Materials were made in December and neither Job D12-1 nor D12-2 were shipped to their respective customers in December. The following data are actual information for the month of December. Jobs in December 1) Predetermined Ovh Rate Total D12-1 D12-2 D12-3 Inventory 12/1/2018 Beginning Inventory: Raw Materials 10,000 12/1/2018 Beginning Inventory: Work-in- Process 9,000 4,000 5,000 12/31/2018 Ending Inventory: Work-in-Process 4,300 4,300 12/1/2018 Beginning Inventory: Finished Goods 12,380 6,200 6,180 2) Overhead Applied in December 12/31/2018 Ending Inventory: Finished Goods ??? ??? ??? Incurred during December Total D12-1 D12-2 D12-3 Materials to Production S 3,600 1,500 $ 1,600 S 500 Direct Labor Hours 190 50 100 40 3) Amount of Over or Underapplied Ovh in Dec Machine Hours 1,600 600 800 200 Factory Equp. Depreciation 7,000 Rent assigned to Factory 8,000 Office Equip Depreciation 1,000 Rent assigned to Office 4,000 Indirect Labor 3,500 Indirect Materials 2,500 Factory supervisory labor 1,750 Sales Commissions 8,000 Office Supplies & Expenses 4,0004) Ending FG Inventory (@12/31/18) for Job D12-1 Total D12-1 D12-2 D12-3 5) Operational Efficiency Question for Job D12-1: Assume there were 50 custom chairs for Job D12-1 in Finished Goods Beginning Inventory (@12/1/18) and there were 100 D12-1 custom chairs manufactured in December. The production manager believes the chairs manufactured in December were made more efficiently than the D12-1 chairs manufactured in prior months. Does the cost information above substantiate the production manager's assumption? 100 were completed in December