Reference no: EM132567274

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 97,000 and estimated factory overhead is $727,500. 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$ 8,800

Work-in-process inventory (All Job A) 33,800

Finished goods inventory 73,500

Material purchases 123,500

Direct materials requisitioned Job A 78,000 Job B 40,000

Direct labor hours Job A 5,500 Job B 2,000

Labor costs incurred Direct labor ($9.50/hour) 71,250

Indirect labor 14,800

Supervisory salaries 7,300

Rental costs Factory 8,300

Administrative offices 3,100

Total equipment depreciation costs Factory 9,450

Administrative offices 3,550

Indirect materials used 13,300

Required:

Question 1. What is the total cost of Job A?

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

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