Application of Overhead The following information is for Punta Company for July: a. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175...

Application of Overhead The following information is for Punta Company for July: a. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours. b. Job S was shipped to customers during July.  c. Job T was still in process at the end of July. d. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July.

Required 1. Calculate the total manufacturing cost for Job S and Job T for July. 2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.