Switech Technology's Work in Process Inventory on June 1 Has

Essay

Switech Technology's work in process inventory on June 1 has a balance of $24,500 representing Job No. 95. During June, $67,500 of direct materials were requisitioned for Job No. 95 and $4,300 of direct labour cost was incurred on Job No. 95. Manufacturing overhead is allocated at a rate of $15.00 per direct labour hour. Actual manufacturing overhead costs incurred in June amounted to $20,000. There were 600 actual direct labour hours worked in June. No new jobs were started during June. Job No. 95 is completed on June 28.
A) Determine the total cost assigned to Job No. 95.
B) Is manufacturing overhead overallocated or underallocated for the month of June? By how much?