Question #3: M&H, Inc. allocates overhead at $9 per direct labor hour. Job X260 required 4 boxes of direct materials at a cost of $30 per box and took employees 10 hours to complete. Employees earn $15 per hour.

Instructions

Compute the total cost of Job X260.

Question #4:

A Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000.

a) Determine the total factory overhead amount applied.

b) Calculate the over or under applied amount for the year.

c) Prepare the journal entry