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1. On January 7, 20Y5, the materials departmentof Deacon Corporation received the following items: ReceivingReport No. 40 for $1,400, materials requisition for Job 70 for$400, and materials requisition for Job 71 for $230.

As of January 1, 20Y5, Deacon Corporation expected to incur$10,000 of factory overhead. This would be applied per hour ofmachine usage, which is expected to be 4,000 hours for the month.The company incurs the following expenses during the month: $1,000for indirect materials, $4,100 for indirect labor, $5,000 forfactory utilities, and $1,750 for factory depreciation. Job 70required 1,900 machine hours and Job 71 required 2,950 machinehours.

a. Calculate the predetermined factory overheadrate.

b. What is the amount of costs incurred for Job70?

Throughout the year, Deacon Corporation incurred an additional$90,400 of expenses allocated to Factory Overhead. The companyapplied an additional $89,200 of Factory Overhead to Work inProcess.

c. At the end of January and December, wasFactory Overhead over- or underapplied? And by how much?

Deacon Corporation completed Job 70 on February 15 and Job 71 onMarch 18. Job 70 required the following additional costs: $7,500 ofmaterials, $5,000 of direct labor, and $4,000 of factory overhead.Job 71 required the following additional costs: $6,100 ofmaterials, $3,300 of factory overhead, and $4,900 of directlabor.

d. If Work in Process had a beginning balanceof $5,000 as of the beginning of January, what is the balance afterthe completion of the jobs? An additional $2,300 was transferred tofinished goods inventory for Job 72.