Work in process inventory for Bradley Inc. at the beginning of the year was a single job, Job 125 : The Companys actual cost incurred

Work in process inventory for Bradley Inc. at the beginning of the year was a single job, Job 125 :

The Company’s actual cost incurred during the year are as follows:

The Company’s budgeted costs for the year are as follows:

Budgeted overhead

Variable

Indirect materials …………………………..………...........…….    $16,000

Indirect labor ………………………….....…..........…………….…     56,000

Employee benefits …………………...........….………………….     24,000

Fixed

Supervision………………………………….....………...........……...   20,000

Depreciation ……………………………………....…...........………    12,000

Total ………………………………………………...................……… $128,000

Budgeted direct labor dollars ……………….....…………….   $ 80,000

Rate per direct labor dollar ($128,000/$80,000) ………….    160%

Required

1. What was the actual factory overhead for Bradley, Inc for the year?

2. What was overapplied or underapplied overhead for the year?

3. Job 125 was the only job completed and sold in the year. What amount was included in the cost of the goods sold for this job?

4. What was the amount of Work-in-Process Inventory at the end of the year?

Materials Total Job Labor Overhead 125 $22,500 $22,000 $33,000 $77,500