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A small toy manufacturer called Spinning Top Ltd. uses machine-hours (mh) as the allocation base to allocate manufacturing overhead costs to the various jobs contracted

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A small toy manufacturer called Spinning Top 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 Clown Inc. (CI) job which required the production of clown outfits. CI Job Actual Costs $1,000 Company Budget $40,000 $10,000 $30,000 100,000 mh Direct materials Direct labour Manufacturing overhead costs Machine-hours $200 $300 900 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 Clown Inc. Job. Show all workings. (1.5 marks) Calculate the total cost of the Clown Inc. Job using the allocated overhead. Show all workings. (1.5 marks) d. Calculate the over or under allocated overhead for the Clown Inc. Job. Show all workings. (15 marks)

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