Grass Mower Company manufacturers a variety of gasoline-powered mowers for discount hardware and department stores The company uses a job cost system and treats each customer's order as a separate job The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis, the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-process upon receipt. Upon completion goods are shipped directly to customers rather than transferred to finished goods inventory At the beginning of September the company had the following work-in-process inventories Job 1 Job 2 Job 3 Job 4 Total 20,000 15,000 16,000 9,000 During September, the following activities took place 1. Started jobs 5,6, and 7 2. Ordered and received the following raw materials for specified jobs Motors Chassis Wheels Total $700 1,100 Job 2 Job 3 Job 4 Job 5 Job 6 Job 7 Total $700 1,100 1,500 1,500 1,000 6,000 900 12,400 0 11,300 1.000 4,000 8.0003,500 7,500 3,800 3. Incurred September manufacturing payroll: Direct Labor Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Job 7 Total Direct Lab $600 3,100 3,000 4.000 1.500 2.500 2.000 Indirect Labor 3,000 4. Incurred additional manufacturing overhead costs for September Manufacturing supplies purchased and used Depreciation on factory fixed assets Factory utilities 2,000 5,000 5,000 5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead and predicted annual direct labor cost as follows Predicted Annual Overhead Predicted Annual Direct Labor cost $205,000 $184,500