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Mata Furniture Company manufactures specialist furniture for use with computers. It uses a RF costing system to allocate costs to finished Goods and maintains its

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Mata Furniture Company manufactures specialist furniture for use with computers. It uses a RF costing system to allocate costs to finished Goods and maintains its financial records on financial year which operates from 1 July 2019 to 30 June 2020 The Work in Process Inventory on 31 May 2020 consisted of the following Job No Description Units Accuated Cost SES23 Storage Equipment 20.000 S850.000 P5612 Printer Stand 25.000 $300.000 CH421 Chair 15 000 S431.000 Total 51.595.000 The Finished Goods Inventory at 31 May 2020 was as follows: Unit cost Item Description Storage Equipment Printer Stand Chair Desk Total Quantity units 7500 21000 19400 11200 555 535 $102 Accuent 480,000 1.155.000 679.000 110.400 3.456.000 At the end of May 2020, the balance in Matix Furniture Company's Material inventory Account was $579,000. Purchases of Material Inventory during one were $622.000 The Raw Material requisitioned for jobs during lone were as follows Job number SE523 P5612 CH421 051745000 dess! RM used 167,000 221.000 13.800 252,000 Matix Furniture Company applies manufacturing overhead on the basis of machine hours. The manufacturing overhead budget for the year totalled $4,500,000 and the company budgeted would be using 900.000 machine hours. From July 2019 to the end of May 2020 the company has used 535.000 machine hours and is actual manufacturing overhead has amounted to $4,105.000 During the month of June 2020 machine hours, tabour hours and labour cost was follows: Job number Machine hours Labour hours labour cost SE523 12.000 11.600 $122.400 PS612 19.500 14.300 $200.500 CH421 4400 3.600 $63,200 D5174 14 000 12 500 $138.000 Indirect labour 3.000 529 400 Supervision $S7500 Total 49.900 5591.100 The jobs completed in June 2020 and the unit sales Guting June 2019 were as follows 45.000 Quantity completed 20.000 Job number SE523 PS612 CH421 D5174 Item Description Storage Equipment Printer Stand Chair Desk Unit Sales 17 500 18.000 21.000 6.000 15 000 S.000 Required: Describe the circumstances when a job order costing system should be used [b]Calculate, showing working the balance in Matix Furniture Company's Work in Process r m system Account at 30 June 2020 (c)Calculate the cost of the chairs in the finished Goods Inventory 30 June 2020. (djactual manufacturing overhead incurred in June amounted to 227.000 Calculate the over or underapplied overhead for the year tel Outline two different treatments for the over or underapied overhead balances when using a job order costing () if the Matis Furniture Company considers that a variation of 500,000 in the over or underapplication of overhead is material and must be dealt with appropriately in the accounts is the variationlover or underapplication of overhead materal ties what approach does the company use to adjust the over or underapplication of overhead? Gel The company is concerned with its calculation and application of overhead and has asked you to advise it should consider using Activity Based Costing as it is considering expanding its product range and its concerns about overhead application

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