1. ABC Company estimates that it will require 100,000 machine-hour to meet the coming periods estimated production level in 2018. In addition, the company estimates total fixed manufacturing overhead at SR 300,000, and variable manufacturing overhead costs of SR 3 per machine -hour.

Required:

1. Calculate pre-determined overhead allocation rate.

ABC company produced in Feb.2018 two job orders with the following information (Amounts in SR): / Direct material Direct labor Actual machine hour used by orders Units produced Job no. 1 300.000 150,000 5,000 5,000 Job no.2 400.000 200,000 8,000 6,000 B. Calculate the applied overhead to job orders. C. Calculate the total cost for each job order and cost per unit