Overhead Costs

Q1. Yahya Company uses a job costing system with machine hours as the allocation base for overhead.  The company uses normal costing to develop the overhead allocation rate.

The following data are available for the latest accounting period:

Estimated fixed factory overhead cost$200,000

Estimated machine-hours140,000

Actual fixed factory overhead cost incurred$220,000

Actual machine-hours used160,000

Jobs worked on:

Job No.  Machine Hours Used

1040  17,000

1050  19,000

1060  12,000

1070  11,000

a. Compute the overhead allocation rate.

b. Choose one job for which you will find the overhead allocated.

c. Deter mine total over or underapplied overhead at the end of the year