In February, Forester Engineering worked on three contracts: 1,200 hours for Tarvell Company, 1,100 hours for Natron LLC and 3,400 for Lisere Corp. Forester bills clients at the rate of $150 per hour, labor cost for its engineering staff is $45 per hour. The total number of hours worked in February was 6,000 (any untraced hours are considered overhead), and non-labor overhead costs were $325,000. Overhead is applied to clients at $55 per labor-hour. In addition, Forester had $243,000 in marketing and administrative costs. All transactions are on account. All services were billed.

Required:

a. Determine the cost of each of the three jobs.

b. What is the amount of over-or under applied overhead?

c. How much operating profit did Forester make in February? Assume the over - or under applied overhead is not closed out each month.