Script Company uses a job costing accounting system for its production costs. A predetermined overhead rate based on direct labor-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows.

Direct labor-hours		30,500			41,600			51,000
Variable overhead costs	$	366,000		$	499,200		$	612,000
Fixed overhead costs		501,200			501,200			501,200
Total overhead	$	867,200		$	1,000,400		$	1,113,200

The expected volume is 41,600 direct labor-hours for the entire year. The following information is for October, when jobs 1011 and 1015 were completed.

Inventories, October 1
Raw materials and supplies	$	42,900
Work in process (Job 1011)		91,500
Finished goods		228,700
Purchases of raw materials and supplies
Raw materials		630,800
Supplies		80,400
Materials and supplies requisitioned for production
Job 1011		279,100
Job 1015		232,900
Job 1017		45,300
Supplies		75,600
	$	632,900
Machine-hours (MH)
Job 1011		6,217 MH
Job 1015		6,116 MH
Job 1017		3,706 MH
Direct labor-hours (DLH)
Job 1011		14,020 DLH
Job 1015		6,150 DLH
Job 1017		3,730 DLH
Labor costs
Direct labor wages (all hours @ $12)	$	286,800
Indirect labor wages (12,700 hours)		66,675
Supervisory salaries		127,400
Building occupancy costs (heat, light, depreciation, etc.)
Factory facilities	$	36,600
Sales and administrative offices		14,060
Factory equipment costs
Power	$	21,630
Repairs and maintenance		8,190
Other		9,730
	$	39,550

Required:

a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year.

(Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $24.55 per direct labor-hour. Use this amount in answering requirements [b] through [e].)

b. Compute the total cost of Job 1011 when it is finished.

c. How much of factory overhead cost was applied to Job 1017 during October?

d. What total amount of overhead was applied to jobs during October?

e. Compute actual factory overhead incurred during October.

f. At the end of the year, Script Company had the following account balances:

		Balance
Underapplied overhead	$	4,900,000
Cost of goods sold		65,100,000
Work-in-process inventory		9,300,000
Finished goods inventory		18,600,000

Show the Underapplied Overhead effect on the account balances in the following table.

A. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. (Round your answer to 2 decimal places.)

Overhead rate

per DLH

B. Compute the total cost of Job 1011 when it is finished

The total cost of Job 1011

C. How much of factory overhead cost was applied to Job 1017 during October? (Round your answer to the nearest dollar amount.

Factory overhead cost of Job 1017

D. What total amount of overhead was applied to jobs during October? (Round your answer to the nearest dollar amount.)

	Amount of overhead

E. Compute actual factory overhead incurred during October.

Actual factory overhead

F. Show the Underapplied Overhead effect on the account balances in the following table.

Underapplied overhead
Cost of goods sold
Workinprocess inventory
Finished goods inventory