1. Company: MNO Construction

Scenario: Overhead Allocation

Data:

• Total Overhead Costs: $1,000,000
• Direct Labor Hours: 50,000
• Machine Hours: 25,000
• Projects: A (30,000 labor hours, 15,000 machine hours) and B (20,000 labor hours, 10,000 machine hours)

Requirements:

1. Allocate overhead costs to Projects A and B.
2. Determine the overhead cost per labor and machine hour.
3. Analyze the accuracy of overhead allocation.
4. Suggest methods to improve overhead cost control.