Magic Lens Inc., produces high-quality MRI Scanners for health-care and education uses. The

company uses a job order costing system. Because the scanners optics require significant

manual labor to ensure adherence to strict manufacturing specifications, the company applies

overhead on the basis of direct labor hours. At the beginning of 2015, the company estimated

its manufacturing overhead would be $1,960,000 and that employees would work a total of

98,000 direct labor hours.

During March, the company worked on the following five jobs:

Job	Beginning Balance	Direct materials added during march	Direct labor added during march	Direct labor hours added during march
134	$118,600.00	$4,000.00	$8,400.00	$150.00
158	121,450	2,500	12,160	300
212	21,800	86,400	36,650	3,450
287	34,350	71,800	31,850	2,700
301		18,990	21,845	1,400
Total	296,200	183,690	110,905	8,000

Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job

301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134

and 212 were delivered to customers during March.

Actual overhead for the month of March was $176,300.

Required:

a)

Calculate the predetermined overhead rate used by Magic Lens Inc., in 2017.

b)

Calculate the total manufacturing cost for March.

c)

Calculate the total cost for each of the five jobs as of March 31.

d)

Calculate the cost of goods manufactured for March.

e)

Calculate the balance in the Work in Progress Inventory account as of March 31.

f)

Calculate the Cost of Goods Sold for March.

g)

Calculate the balance in the Finished goods Inventory account as of March 31.

h)

Magic Lens Inc., incurred $176,300 manufacturing overhead in the month of March.

Given that expenditure for overhead, was manufacturing overhead under- or over-

applied in March? By how much?