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

Answer #1

1. Predetermined overhead = Estimated overhead/Estimated machine hours

= 196,880/85,600

= 2.30 per MH

.

2. Applied overhead = 80,300*2.30 = 184,690

Actual overhead = 194,000

So, overhead is underapplied by 9310

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Answer 2

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