Senator Technology's Work in Process Inventory on July 1 Has

Essay

Senator Technology's work in process inventory on July 1 has a balance of $49,000 representing Job No. 96. During July, $135,000 of direct materials were requisitioned for Job No. 96 and $8,600 of direct labour cost was incurred on Job No. 96. Manufacturing overhead is allocated at a rate of $15.00 per direct labour hour. Actual manufacturing overhead costs incurred in July amounted to $40,000. There were 1,200 actual direct labour hours worked in July. No new jobs were started during July. Job No. 96 is completed on July 28.
A) Determine the total cost assigned to Job No. 96.
B) Is manufacturing overhead over allocated or under allocated for the month of July? By how much?