Overhead is applied on the basis of direct labour cost. During the first quarter of the year, the following activity took place in each of the accounts lists:

Work in Process

Bal. 17,000I Complete 245,000

DL 80,000 I

OH 140,000 I

DM 40,000I

Bal. 32,000

Finished Goods

Bal. 40,000 I Sold 210,000

Complete 245,000 I

Bal. 75,000

Overhead

138,500 I 140,000

Bal. 1,500I

Cost of Goods Sold

210,000 I

I

Job 32 was the only job in process at the end of the quarter. A total of 1,000 direct labour at $10 per hour were charged to Job 32.