Raw Material Inventory 12,000 Work in Process Inventory 4,500 Finished Goods Inventory 16,000 9/1 9/1 9/30 Overhead Cost Control 14,800 Accounts Payable 8,000 9/30 The overhead is allocated to jobs using an estimated rate applied to direct labour hours. The budget for the year called for $180,000 of overhead cost and 60,000 direct labour hours. Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000. September 1 finished goods inventory was $11,000. Cost of jobs completed in September was $89,000. On September 30 there was a single job unfinished, consisting of $1,800 (300 hours) of direct labour and $2,600 of direct material. 5,200 direct hours were worked during September. All workers earn the same rate of pay. All actual overhead costs incurred have been recorded. Over- or underapplied overhead for September was: $800 underapplied $800 overapplied $1,600 underapplied $1,600 overapplied