Neco 2017 Financial Accounting Question 14

Manufacturing Accounts - Job Order Costing (Hard) A company applies overhead on the basis of machine‑hours. The overhead budget is \(₦150,000\) for an expected 5,000 machine‑hours. Actual overhead incurred for the month was \(₦165,000\) and the actual machine‑hours used were 5,400. Three jobs were processed as follows: | Job | Direct Materials (₦) | Direct Labour (₦) | Machine‑hours | |-----|----------------------|-------------------|---------------| | A | 20,000 | 12,000 | 1,200 | | B | 15,000 | 9,000 | 1,000 | | C | 25,000 | 15,000 | 1,800 | (a) Compute the overhead applied to each job and the total cost of each job. (b) Determine the amount of under‑applied overhead and allocate it to Cost of Goods Sold on a proration basis using the total job costs (including applied overhead). What is the total cost of Job C after the allocation of the under‑applied overhead?