Question: Has commenced work on three jobs during its first year of operations. Costs incurred for each of ...

has commenced work on three jobs during its first year of operations. Costs incurred for each of these jobs are as follows:

	Job 1	Job 2	Job 3
Direct Materials	$650,000	$320,000	$200,000
Direct Labour	$100,000	$200,000	$250,000

Overhead is applied to jobs at a rate of $0.50 per direct labour dollar spent. During the year, Job 1 was completed, while Job 2 was completed and sold. Job 3 is still process at the end of the year. Actual manufacturing overhead costs incurred amounted to $300,000. GHI employees worked a total of 55,000 hours during the year. To dispose of any over or under-applied Overhead

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