You have the information related to Nasser Compagny:

Direct Direct Direct

Materials Labor Cost Labor Hours

Job 200 $200 $800 40

Job 201 250 200 10

Job 202 500 600 32

Nasser Compagny uses job costing and applies overhead using a normal costing system using direct labor hours as the allocation base.

The estimated overhead cost is $400,000, estimated direct labor cost is $500,000 and estimated direct labor hours are 25,000.

The actual overhead cost was $420,000, actual direct labor cost was $390,000, and actual direct labor hours were 20,000.

What is the overhead allocation rate?

What is the total manufacturing cost of Job 200?

Discuss when Job costing is used and the process of allocating cost using job costing.