Swift Decorating uses a job order cost system to collect the costs
of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year.
Estimated overhead (CIM estimados) $860,000
Actual overhead (CIM reales) $879,000
Estimated decorator hours (horas estimadas) 50,000
Actual decorator hours (horas reales) 52,000
1. Calculate the default indirect cost rate (use points to indicate decimal points).
2. Calculate the indirect costs assigned (applied) (use points to indicate decimal points and commas to separate thousands).
3. Indicate whether indirect costs were under-allocated or over-allocated. (You are writing SUB or ENVELOPE, in capital letters).
4. Indicate how much indirect costs were under-allocated or over-allocated. . (use points to indicate decimal points).
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