Martha’s Interiors, an interior decorating firm, uses a job order costing

system and applies overhead to jobs using a pre-determined rate of 60

percent of direct labor cost. At the beginning of June 2021, Job #918 was
the only job in process. Costs of Job #918 included direct material of
$16,500, direct labor of $2,400, and applied overhead of $1,440. During
June, the company began work on Jobs #919, #920, and #921 and
purchased and issued $34,700 of direct material. Direct labor cost for the
month totaled $12,600. Job #920 had not been completed at the end of
June, and its direct material and direct labor charges were $6,700 and
$1,300, respectively. All the other jobs were completed in June.

1. What was the the total cost of Job #920 as the end of June 2021?
Formula: Total cost = Direct Material + Direct Labor + Manufacturing Overhead
Solution:
Total Cost of Job #920
Direct Material $6,700.00
Direct Labor $1,300.00
Applied Overhead (1,300 x 60%) $780.00
TOTAL $8,780.00

Answer: The total cost of job #920 as of the end of June is 8,780.00

2. What was the cost of goods manufactured for June 2021?

Solution:
Beginning Balance (Job #918) (16,500 + 2,400 + 1,440)
Direct Material $16,500.00
Direct Labor $2,400.00
Applied Overhead $1,440.00
Total Direct Material
Total Direct Labor
Total Applied Overhead (12,600 x 60%)
less: Job 920 as work in process
Cost of Good Manufactured

Answer: The cost of goods manufactured for June 2021 is $66,420.00

3. If actual overhead for June was $8,700, was the overhead underapplied or overapplied for the month? By how much?
Solution:
Actual Overhead $8,700.00
Applied Overhead $7,560.00
Underapplied Overhead (8,700 - 7,560) $1,140.00

Answer: The actual overhead was underapplied by $1,140

 $20,340.00

$34,700.00
$12,600.00
$7,560.00
$8,780.00
$66,420.00

applied for the month? By how much?