Job costing and overhead application Uniflex applies overhead on the basis of direct labor cost. In December 20X4, the company’s cost accountant made the following predictions for 20X5 opera

Job costing and overhead application Uniflex applies overhead on the basis of direct labor cost. In December 20X4, the company’s cost accountant made the following predictions for 20X5 operations: direct labor cost, $620,000; factory overhead, $961,000. Uniflex worked on job Nos. 241 and 242 in January. The costs incurred and production status of these two jobs appear in the table that follows. Job No. 241 Job No. 242 Direct materials $29,000 $47,000 Direct labor $18,000 $28,500 Production status In process In process By the end of 20X5, actual direct labor cost amounted to $612,500, and factory overhead incurred totaled $907,500. There was no work in process on January 1, 20X5. Compute the following: a Uniflex’s overhead application rate. b The balance of the Work in Process account on January 31, 20X5. c The amount of over- or underapplied overhead for 20X5. Be sure to indicate whether overhead was overapplied or underapplied. chart below Questions a. Uniflex’s overhead application rate. (This rate needs to be recalculated because the labor has changed.) b. The balance of the Work in Process account on January 31, 20X5. Job 241 Material Labor Overhead Total Job 242 Material Labor Overhead Total c. The amount of over- or underapplied overhead for 20X5. Indicate whether overhead was overapplied or underapplied.

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