Q1. 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
a. Compute the overhead allocation rate.
b. Choose one job for which you will find the overhead allocated.
c. Determine total over or underapplied overhead at the end of the year
Q 2 Give numerical example explaining the concept of Equivalent number of units. Discuss the advantages of using equivalent number f units?
Q 3 Give example related to ABC costing and find the overhead allocation rate for this example using ABC Costing? Discuss the advantages of using ABC Costing?
overhead allocation rate = actual cost / actual hrs worked = $220000/ 160000 = 1.375. best Job is Job Number= 1050 Equivalent... View the full answer