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.