Compute the overhead allocation rate

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Question 1. 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-hours 140,000

Actual fixed factory overhead cost incurred $220,000

Actual machine-hours used 160,000

Jobs worked on:

Job No. Machine Hours Used

1040 17,000

1050 19,000

1060 12,000

1070 11,000

i. Compute the overhead allocation rate.

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

iii. Determine total over or underapplied overhead at the end of the year

Reference no: EM132449888

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