orgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,000 units of Product B was received. The standard cost of one unit of Product B is as follows Direct materials Direct labor Overhead 3 pounds at $1.00 per pound 1.00 hour at $8.00 per hour 2 hours (variable $4.00 per machine hour; fixed $2.50 per machine hour $3.00 8.00 13.00 $24.00 Standard cost per unit Normal capacity for the month was 4,000 machine hours. During January, the following transactions applicable to Job No. 12 occurred 1. 2. 3. 4. 5. 6. 7. 8. Purchased 3,100 pounds of raw materials on account at $1.04 per pound Requisitioned 3,100 pounds of raw materials for Job No. 12 Incurred 1,040 hours of direct labor at a rate of $7.95 per hour Worked 1,040 hours of direct labor on Job No. 12 Incurred manufacturing overhead on account $14,250 Applied overhead to Job No. 12 on basis of standard machine hours allowed Completed Job No. 12 Billed customer for Job No. 12 at a selling price of $75,000