Q1) Alphonse Company assigns fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the starting of year company expects fixed overhead costs to be= $600,000 and variable costs to be $800,000. Expected machine hours are 6,000 and expected direct labor hours are= 80,000. Actual fixed overhead costs are= $700,000 and actual variable overhead costs are $750,000. Actual machine hours during year are 5,500 and actual direct labor hours are 90,000.
a) How much overhead is assigned?
b) Determine the over/under absorbed overhead?