The Fisher Products Company uses a job costing system. The company estimated its annual manufacturing overhead to be $90,000, and the estimated number of machine hours for the year to be 20,000 hours. This company uses machine hours to apply overhead. In the first month, the company worked on Jobs 1,2, and 3. At the end of the 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.

	Job #1	Job #2	Job#3
Direct materials used	$10,000	$11,000	$12,000
Direct labor cost	$9,000	$12,000	$13,000
Machine hours	800	900	1,000

Required:

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

Determine the manufacturing overhead and the total cost assigned for each of the three jobs during the month.

	Job #1	Job #2	Job#3
Direct materials used	$ 10,000	$ 11,000	$ 12,000
Direct labor cost	9,000	12,000	13,000
Manufacturing Overhead
Total Job cost

c. What is the ending work in process inventory for the first month? Please give cost of job and the job number?

d. What is the ending finished goods inventory for the first month? Please give cost of job and the job number?

e. What is the cost of goods sold for the first month? Please give cost of job and the job number?

f. If actual overhead for the month is $12,000, what is the dollar amount overhead variance(difference) ? Is the overhead over or under applied?