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Insides, an interior decorating firm, uses a job order costing system and applies overhead to jobs using a predetermined rate of $17 per direct labor hour. On June 1, 2010, Job #918 was the only job in process. Its costs included direct material of $8,250 and direct labor of $500 (25 hours at $20 per hour). During June, the company began work on Jobs #919, #920, and #921. Direct material used for June totaled $21,650. June's direct labor cost totaled $6,300. Job #920 had not been completed at the end of June, and its direct material and direct labor charges were $2,850 and $800, respectively. All other jobs were completed in June.
a. What was the total cost of Job #920 as of the end of June 2010?
$
b. What was the cost of goods manufactured for June 2010?
c. If actual overhead for June was $5,054, was the overhead underapplied or overapplied for the month? By how much?
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