Swift Decorating uses a job order cost system to collect the costs of


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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

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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).

$
per hour

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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