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The Sweet Company sells batches of custom-made futons to customers and uses predetermined rates for ?xed overhead, based on machine hours. The following data are available for last year:
Budgeted and actual ?xed factory overhead cost $ 145,600
Budgeted machine hours 91,000
Actual machine hours used 100,100
Job 20 10,100
Job 21 16,300
Job 22 13,600
Job 23 9,100
Question 1: Compute the estimated overhead allocation rate to be used for the year.
Question 2: Determine the overhead to be allocated to Job 21.
Question 3: Determine total overapplied or underapplied overhead at the end of the year.
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