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Print item York Company is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor.
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Estimated overhead $50,000
Direct labor hours 5000
Predetermined overhead rate $10 ($50,000/5,000)
A 10 per Direct labor hour
B Job 0325 cost
Aluminium cost $60
Direct labor cost $40 (20*2)
Overhead allocated $20 (10*2)
Job 0325 cost $120
C Overhead incurred
Indirect material $40
Admin labor $150
Utilities $290
Depreciation $240
Overhead incurred during month $720
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