Question 3 Swifty, Inc. manufactures ergonomically designed computer furniture. Swifty uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs ob No. Item Units Accumulated Cost CC723 Computer caddy 21,000 $1,000,000 431,000 266,000 $1,697,000 CH291 Chair 20,000 P5812Printer stand 25,000 On November 30, Swifty's Raw Materials Inventory account totaled $682,000, and its Finished Goods Inventory totaled $3,498,400. Swifty applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,850,000, and the company planned to use 970,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 841,000 machine hours, total manufacturing overhead amounted to $4,294,500, and Cost of Goods Sold was $4,284,500. Swifty purchased $8,760,250 in raw materials in December and incurred the following costs for jobs in process that month: Materials Machine Direct Labor Direct Labor ob No. CC723 CH291 PS8 Issued $185,000 $19,800 $219,000 $254,000 Hours Hours Cost 15,000 4,400 19,900 20,000 14,100 4,000 19,300 13,500 $123,400 $48,200 $216,500 $144,000 12 The following jobs were completed in December and transferred to the Finished Goods Inventory: Units CC723 Computer caddy 21,000 20,000 5,000 Job No. Item CH291 Chair DS444 Desk Assume that Swifty sold 14,000 computer caddies, 11,100 chairs, and 4,500 desks in December Swifty incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? Overhead