The accounting records of omar company contained the following information for last year:
beginning
ending
direct materials
$9,000
$7,000
work in process
$17,000
$31,000
finished goods
$10,000
$15,000
manufacturing costs incurred
direct materials
$72,000
overhead
$24,000
direct labor cost (10,000
$80,000

$10,000

$12,000

$8,000
cost of goods
$157,000*
*
selling and administrative costs incurred

$35,000

$20,000

$25,000
3. if omar company applies overhead to jobs on the basis of direct labor hours and job 3 took 120 hours, how much overhead should be applied to that job?
$528
$960
$360
$288
4. the cost of goods manufactured for the year (prior to any under/over-applied adjustments) was:
$135,000
$190,000
$162,000
$168,000