Entrada, an interior decorating firm, uses a job order costing system and applies overhead to jobs using a predetermined rate of $ 17 per direct labor hour. On June 1, 2013, Job # 918 was the only job in process. Its costs included direct material of $ 8,250 and direct labor of $ 500 (25 hours at $ 20 per hour). During June, the company began work on Jobs # 919, # 920, and # 921. Direct material used for June totaled $ 21,650. June’s direct labor cost totaled $ 6,300. Job # 920 had not been completed at the end of June, and its direct material and direct labor charges were $ 2,850 and $ 800, respectively. All other jobs were completed in June.
a. What was the total cost of Job # 920 as of the end of June 2013?
b. What was the cost of goods manufactured for June 2013?
c. If actual overhead for June was $ 5,054, was the overhead underapplied or overapplied for the month? By how much?