Shane’s Shovels produces small, custom earth-moving equipment for landscaping companies. Manufacturing overhead is allocated to work in process using an estimated overhead rate. During April, transactions for Shane’s Shovels included the following:
Direct materials issued to production ....... $180,000
Indirect materials issued to production ....... 30,000
Other manufacturing overhead incurred ...... 250,000
Overhead allocated ............... 225,000
Direct labor costs ................ 75,000

Beginning and ending work in process were both zero.

REQUIRED
A. What was the cost of jobs completed in April?
B. Was manufacturing overhead under-applied or over-applied? By how much?