Factory uses job costing to cost its products. In its first quarter the company incurred the following material and labor cost. Company applies overhead to products using normal costing and uses machine hours as the cost driver
Material data:
- Direct material purchases $100,000
- Direct material used in production (cost) $85,000
- Labor data:
- Direct labor costs $60,000
- Manufacturing overhead data:
- Overhead application rate per machine hour $9.00
- Machine hours used 10,000
- Inventory data:
- Transferred to finished goods $210,000
- Cost of goods sold during quarter $190,000
- Calculate direct materials ending inventory
- Calculate the work in process ending inventory
- Calculate the finished goods ending inventory
At the end of the quarter, actual manufacturing overhead costs totaled $80,000 Calculate the over or underapplied overhead for the period.