Reference no: EM132516510

Badger Company is a job-order costing manufacturer that applies overhead on the basis of direct labor hours.

At the beginning of the year, to establish a predetermined overhead rate, Badger Company estimated total $4,500 in overhead costs and total 300 direct labor hours.

On March 1, there were two jobs in process: Job 89 with a beginning balance of $2,300 and Job 90 with a beginning balance of $1,824. During March, three new jobs were started: Jobs 91, 92, and 93. The amount of direct labor hours actually worked on each job during March was as follows:

                                      Job 89                  Job 90              Job 91          Job 92                  Job 93

Direct labor hours                30 hrs.               50 hrs.             65 hrs.          25 hrs.            20 hrs.

Data on costs added during March for all jobs are as follows:

                                            Job 89               Job 90                 Job 91                Job 92                 Job 93

Direct materials cost                $1,300                 $1,726             $2,230            $1,525             $820

Direct labor cost                          800                    1,150                  1,620             975                480

By March 31, Jobs 89 and 91 were completed and sold. Job 90 was completed but not sold yet. The rest of the jobs remained in process. On March 1, the beginning balance of the Finished Goods inventory account was $2,050. Badger Company prices its jobs at cost plus 40%.

Question 1. What is the manufacturing overhead applied to Job 89?

A) $450

B) $750

C) $7,200

D) $12,000

Question 2. What is the total manufacturing cost incurred by Job 90?

A) $3,626

B) $2,876

C) $5,450

D) $4,700

Question 3. What is the balance in Work-In-Process on March 31?

A) $3,800

B) $2,875

C) $4,475

D) $9,925

Question 4. What is the balance in Finished Goods on March 31?

A) $5,450

B) $7,500

C) $5,676

D) $17,175