A small toy manufacturer called Building Block Ltd. uses machine-hours (mh) as the allocation base to allocate manufacturing overhead costs to the various jobs contracted during the year. The company uses a normal costing system. Estimates are provided for the coming year for the company and actual amounts are given for the Circus Inc. (CI) Job, which required the production of football uniforms.

	Company Budget	CI Job Actual Costs
Direct materials	$20,000	$500
Directlabour	$5,000	$100
Manufacturing overhead costs	$15,000	$150
Machine-hours	50,000 mh	450 mh

Required:

a. Calculate the annual manufacturing budgeted overhead cost-allocation rate for the company. Show all workings. (1.5 mark)

b. Calculate the total manufacturing overhead allocated to the Circus Inc. Job. Show all workings. (1.5 marks)

c. Calculate the total cost of the Circus Inc. Job using the allocated overhead. Show all workings. (1.5 marks)

d. Calculate the over or under allocated overhead for the Circus Inc. Job. Show all workings. (1.5 mark)