Job Costing

an interior decorating firm, uses a job order costing system and applies overhead to jobs using a predetermined rate of Br. 17 per direct labor hour. On June 1, 2010, Job #918 was the only job in process. Its costs included direct material of Br. 8,250 and direct labor of Br. 500 (25 hours at Br. 20 per hour). During June, the company began work on Jobs #919, #920, and #921. Direct material used for June totaled Br. 21,650. June’s direct labor cost totaled Br. 6,300. Job #920 had not been completed at the end of June, and its direct material and direct labor charges were Br. 2,850 and Br. 800, respectively. All other jobs were completed in June.

a. What was the total cost of Job #920 as of the end of June 2010?

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b. What was the cost of goods manufactured for June 2010?

c. If actual overhead for June was Br. 5,054, was the overhead underapplied or overapplied for the month? By how much?

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