Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 93,000 and estimated factory overhead is $511,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished.            September 1, inventories       Materials inventory $  8,400   Work-in-process inventory (All Job A)   33,000   Finished goods inventory   71,500   Material purchases   117,500   Direct materials requisitioned       Job A   74,000   Job B   38,000   Direct labor hours       Job A   5,100   Job B   4,400   Labor costs incurred       Direct labor ($7.50/hour)   71,250   Indirect labor   14,400   Supervisory salaries   6,900   Rental costs       Factory   7,900   Administrative offices   2,700   Total equipment depreciation costs       Factory   8,850   Administrative offices   2,950   Indirect materials used   12,900       Required: 1. What is the total cost of Job A? 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September?

Question

Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 93,000 and estimated factory overhead is $511,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. 

 

       
September 1, inventories      
Materials inventory $  8,400  
Work-in-process inventory (All Job A)   33,000  
Finished goods inventory   71,500  
Material purchases   117,500  
Direct materials requisitioned      
Job A   74,000  
Job B   38,000  
Direct labor hours      
Job A   5,100  
Job B   4,400  
Labor costs incurred      
Direct labor ($7.50/hour)   71,250  
Indirect labor   14,400  
Supervisory salaries   6,900  
Rental costs      
Factory   7,900  
Administrative offices   2,700  
Total equipment depreciation costs      
Factory   8,850  
Administrative offices   2,950  
Indirect materials used   12,900  
 

 

Required:

1. What is the total cost of Job A?

2. What is the total factory overhead applied during September?

3. What is the overapplied or underapplied overhead for September?

 

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