The estimated annual manufacturing overhead for a company using a job costing system is $170,000, and the estimated number of machine hours for the year is 30,000 hours. This company uses machine hours to apply overhead. At the end of the first month the jobs were in the following stages. Job #1 was completed and sold, Job#3 is still being worked on, and Job#2 is completed and still on hand.

In the first month, the following jobs were worked on:

	Job #1	Job #2	Job#3
Direct materials used	$20,000	$10,000	$15,000
Direct labor cost	$17,000	$13,000	$16,000
Machine hours	2,000	3,200	4,000

1. What is the predetermined overhead rate, if the company is using machine hours as the cost driver?

2. Complete the schedule below to determine the total cost assigned to the three jobs during the month.

	Job #1	Job #2	Job#3
Direct materials used	$ 20,000	$ 10,000	$ 15,000
Direct labor cost	17,000	13,000	16,000
Manufacturing Overhead
Total Job cost

3. What is the ending work in process inventory for the first month?

4. What is the ending finished goods inventory for the first month?

5. What is the cost of goods sold for the first month?

6. If actual overhead for the month is $19,000, what is the dollar amount overhead

variance?