Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis...

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Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beg

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Answer 1

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[1]

A	Estimated Overhead	$187,880
B	Estimated machine hours	85400
C = A/B	Predetermined Overhead rate	$2.20	per MH = Answer

[2]

A	Actual MHs worked	80200
B	Predetermined Overhead rate	$2.20
C = A x B	Overhead applied	$176,440
D	Actual Overheads	$182,000
	Overhead applied are LESS than actual overheads = Under-Applied
E = D-C	Under-Applied Overhead	$5,560	Answer

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