Case $4-1($Static$)$ Constructo Incorporated $($Under or Over$-$Applied Overhead$)[$The following information applies to the questions displayed below$]$ Constructo Incorporated Under or Overapplied Overhead Constructo incorporated is a manufacturer of furnishings for infants and children. The company uses a job cost system and employs a full absorption accounting method for cost accumulation. Constructo's work$-$in$-$process inventory at Aprill $30,2001$ consisted of the following jobs. Ine companys finished goods inventory, which Constructo evaluates using the FiFO $($First$-$in$,$ first$-$out$)$ method, consisted of five items. Gisuructo applies factory ovethead on the basis of direct labor hours. The company's factory overhead budget for the this period. Through the first eleven tots $\backslash (\backslash$$ $4,500,000\backslash ),$ and the company plans to expend $600,000$ direct labor hours during factory overhead amounted to $\backslash (\backslash$$ $4,273,500\backslash ).$ At the end of April, the balance in Constructo's Materials inventory account, which includes both raw materials and purchosed parts, was $\backslash (\backslash$$ $668,000\backslash ).$ Additions $10$ and requisitions from the materials inventory during the month of MayAt the end of April, the balance in Constructo's Materials Inventory account, which includes both raw materials and purchased parts, was $\backslash (\backslash$$ $668,000\backslash ).$ Additions to and requisitions from the materials inventory during the month of May included the following. During the month of May. Constructo's factory payroll consisted of the following. Listed below are the jobs that were completed and the unit sales for the month of May$\mathrm{.}1.$ Describe when it is appropriate for a company to use a job cost system$\mathrm{.}2.$ Calculate the dollar balance in Constructo's work$-$in$-$process inventory account as of May $31,2001.3.$ Calculate the dollar amount related to the playpens in Constructo's finished goods inventory as of May $31.2001\mathrm{.}4.$ Explain the proper accounting treatment for overapplied or underapplied overhead balances when using a job cost system