When a job is complete,

	Work-in-Process Inventory is debited
	Finished Goods Inventory is credited
	The cost of the job is transferred to Manufacturing Overhead Control
	Actual direct materials, actual direct manufacturing labor, and allocated manufacturing overhead will comprise the total cost of the job.

The Magnanimous Company uses a predetermined overhead rate of $12 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $320,000. The overhead variance is:

	$36,000 overapplied
	$40,000 overapplied
	$35,560 underapplied
	$40,000 underapplied

Material amounts of underapplied or overapplied overhead should be:

	Treated as an adjustment to cost of goods sold
	Treated as an adjustment to work in process
	Allocated to direct materials, work in process, and finished goods
	Allocated to work in process, finished goods, and cost of goods sold