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Q 4 Abdulkarim Company is using job costing system. The allocation base for overhead is number of machine hours. The company uses normal costing to compute the overhead allocation rate.

The following data are available for 2017 year:

Estimated total overhead cost $270,000

Estimated total number of machine-hours 200,000

Actual total overhead cost $290,000

Actual total number of machine-hours 220,000

Job 630 used 14, 000 machine hours.

The company had job 630 and other jobs during the year.

a. Calculate the estimated overhead allocation rate.

b. Compute the overhead allocated to job 630.

c. Calculate total allocated overhead and analyze the value of allocated overhead.

d. Explain the Concept of Job Costing?