Developing unit costs using normal costing

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The Coastal Landscaping and Snow Removal company employs normal costing to assign overhead costs to firm's various jobs. Labor is charged to jobs at $25 per hour and for upcoming winter session, overhead is estimated at $200,000 for $10,000 hours of activity.

A. Using normal costing, what would be the total charge for removing snow from a mall parking lot that took four hours to clear?

B. If actual overhead costs are $215,000 and actual hours worked are 11,000, is overhead overapplied or underapplied?

Reference no: EM1346994

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