Aegean has a job order costing system. The company uses predetermined overhead rates in applying manufacturing
overhead cost to individual jobs. The predetermined overhead rate in Department is based on machine hours.
The predetermined rate in Department is based on direct material cost. At the beginning of the most recent year,
the company's management made the following estimates for the year:
Job entered into production on April and was completed on May
The company's records show the following actual information about the job:
At the end of the year, the records of Aegean showed the following actual cost and operating data
for all jobs worked during the year:
Department Compute the firm's predetermined overhead rate for Department B
Calculate the overhead variance for Department B for the year.
What is the total cost of Job in Department B
if direct labour hours were used to apply overhead?
