Hendersonville Roofing uses job order costing and applies manufacturing overhead to individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labor hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates.

Job no. 652 for Hensel Grocery Wholesalers measured 8,348 square-feet. The job was started and completed in May. Information pertaining to this project is provided below.

Instructions.
a. Determine the overhead rate that should be used by each division in applying overhead costs to job no. 652.
b. What was the total cost of job no. 652, and what was its cost per square-foot?
c. Prepare the journal entries required to record the sale (on account) of job no. 652 to Hensel Grocery Wholesalers. The total sales price was $60,000.
d. Assume that actual overhead costs for the year were $98,000 in the Installation Division, and $41,000 in the Disposal Division. Assume also that actual direct labor hours used by the Installation Division were 24,000, and actual debris tonnage removed by the Disposal Division totaled 312 tons for the year. On the basis of this information, determine the over- or underapplied overhead in each division for the year.

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Annual Estimates Direct labor Manufacturing overhead Direct labor hours Tons of Debris Installation $750,000 $100,000 25,000 O Disposal $120,000 $36,000 10,000 300