Reference no: EM132447881

Question - Swift Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year.

Estimated overhead (CIM estimados) $860,000

Actual overhead (CIM reales) $879,000

Estimated decorator hours (horas estimadas) 50,000

Actual decorator hours (horas reales) 52,000

Required -

1. Calculate the default indirect cost rate.

2. Calculate the indirect costs assigned (applied) (use points to indicate decimal points and commas to separate thousands).

3. Indicate whether indirect costs were under-allocated or over-allocated. (You are writing SUB or ENVELOPE, in capital letters).

4. Indicate how much indirect costs were under-allocated or over-allocated. . (use points to indicate decimal points).