Assume that I have a 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$300,000

Estimated machine-hours180,000

Actual fixed factory overhead cost incurred$250,000

Actual machine-hours used170,000

Jobs worked on:

Job No. Machine Hours Used

102015,000

103017,000

104013,000

105010,000

a. How can I compute the overhead allocation rate?

b . which job I choose for which I will find the overhead allocated?

c. How can I determine total over or under applied overhead at the end of the year?