Assignment: Overhead Costs
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.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.