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Hallaway Inc. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead
Hallaway Inc. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead allocation rate. The following information is available at the beginning of the year: Estimate Estimated factory overhead costs $1,666,000 Estimated machine hours 98,000 On October 31 the following information was available: Job # Description 1430 Direct materials $10,800 Direct labour $7,700 Machine hours 110 Required: Job # 1431 $4,900 $3,500 50 Use the job order costing system to answer the following questions. The predetermined plantwide overhead rate is $. per machine hour. The amount of overhead applied to Job 1430 is $ The total cost of Job 1430, after overhead is applied, is $. A/ Job 1430 was completed and the client was billed cost plus 60%. The price charged for the job was $ A The total cost of Job 1431, after overhead is applied, is $ A At the end of the year total actual machine hours were 95,000. Therefore, total overhead applied to all jobs for the year was $ A/ In addition, at the end of the year actual factory overhead was $1,532,000. Given this information, is factory overhead over-applied (enter OA), under-applied (enter UA), or neither (enter NA). Be sure to enter the correct letters! A/ Given the above information, the total over- or under-applied factory overhead for as $ the year Enter your answer as a positive number. A/
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