O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $17 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows: Year 2 Year 1 70.200 55,200 Direct labor-hours worked Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Power Heat and light Supervision Depreciation Property taxes and insurance Total manufacturing overhead costs $ 2,772,000 1,047,000 702,000 553,200 139.200 717,450 1,983,700 752,450 $ 8.667.000 $ 2,118,000 822,000 552,000 583,200 139,200 777,450 1,983,700 752,450 $ 7,728,000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27, year 2. It is scheduled to ship on January 7, year 3. Job MC-275 is still in progress. The predetermined rate in year 2 was $130 per direct labor hour. Data on direct material costs and direct labor-hours for these jobs in year 2 follow: Direct material costs Direct labor-hours Job MC-270 $ 271,200 2,620 hours Job MC-275 $ 496,200 3.320 hours During year 3, O'Leary incurred the following direct material costs and direct labor hours for all jobs worked in year 3, including the completion of Job MC-275, S Direct material costs Direct labor-hours Actual manufacturing overhead 11,960,000 75,200 9,108,000 S For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow: MC-389 MC-390 MC-397 MC-399 Direct materials $44,400 S68.200 S104,700 $30,100 Direct labor-hours 1,860 hours 2,652 hours 4,596 hours 1,420 hours Job status Finished Finished In progress In progress Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 3? Work-in-process inventory Finished goods inventory b. O'Leary incurred direct materials cost of $58,200 and used an additional 312 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-275? Final (total) cost charged c. What was over- or underapplied overhead for year 3? overhead O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $17 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows: Year 2 Year 1 70.200 55,200 Direct labor-hours worked Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Power Heat and light Supervision Depreciation Property taxes and insurance Total manufacturing overhead costs $ 2,772,000 1,047,000 702,000 553,200 139.200 717,450 1,983,700 752,450 $ 8.667.000 $ 2,118,000 822,000 552,000 583,200 139,200 777,450 1,983,700 752,450 $ 7,728,000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27, year 2. It is scheduled to ship on January 7, year 3. Job MC-275 is still in progress. The predetermined rate in year 2 was $130 per direct labor hour. Data on direct material costs and direct labor-hours for these jobs in year 2 follow: Direct material costs Direct labor-hours Job MC-270 $ 271,200 2,620 hours Job MC-275 $ 496,200 3.320 hours During year 3, O'Leary incurred the following direct material costs and direct labor hours for all jobs worked in year 3, including the completion of Job MC-275, S Direct material costs Direct labor-hours Actual manufacturing overhead 11,960,000 75,200 9,108,000 S For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow: MC-389 MC-390 MC-397 MC-399 Direct materials $44,400 S68.200 S104,700 $30,100 Direct labor-hours 1,860 hours 2,652 hours 4,596 hours 1,420 hours Job status Finished Finished In progress In progress Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 3? Work-in-process inventory Finished goods inventory b. O'Leary incurred direct materials cost of $58,200 and used an additional 312 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-275? Final (total) cost charged c. What was over- or underapplied overhead for year 3? overhead