Flint Contracting Company builds additions and remodels homes. The firms pricing policy is to estimate the direct costs of the job, allocate overhead as a percentage of the direct costs, and then add 40% to this as profit. For the next year, direct costs are estimated at $ 7,734,000 and overhead costs are estimated at $ 9,899,520.

Determine the companys overhead allocation rate. (Round answer to 0 decimal places, e.g. 25%.)

Overhead allocation rate

%

Calculate the price that will be quoted to a customer for a remodelling job that is expected to have direct materials costs of $ 24,000 and direct labour costs of $ 14,000.

Price qoute

$

If actual direct costs next year are $ 6,873,000, what would be the amount of overapplied or underapplied overhead?

Overhead

underapplied/ overapplied