Louis, Toi, Alonzo, and Sylvia, (L, T, A, and S) a local public accounting firm, uses job order costing to capture the costs of reviews performed. There were no review jobs in process on July 1. Records maintained by L, T, A and S reveal the following data concerning the three reviews performed during July.

                               Bobby        Stephanie        Flenoil

                            Direct materials $   600    $   400     $    200

                            Labor costs    $6,600    $3,375         $5,400

                            Hours             90           45      70

Total estimated overhead for reviews for the year is $123,000. Annual review hours for the year is expected to be 2,460. Overhead costs are applied to reviews on the basis of hours.

The actual overhead for the month of July was $11,000.

The Stephanie review was incomplete at the end of July.

INSTRUCTIONS:

In a memo to your supervisor, indicate the following information related to the month of July:

a. The predetermine overhead rate for reviews.

b. The total cost of each review at July 31.

c. The balance in REVIEWS in PROCESS at July 31.

d. Whether overhead was over- or under-applied for the month of July.