Abuja Printing House uses job costing. Its budgeted factory overhead for the year is ₦9,600,000 and budgeted direct labour hours are 40,000. Job No. 312 used 350 direct labour hours. Actual factory overhead incurred during the period was ₦9,900,000 against actual direct labour hours of 41,250. What is the overhead absorbed by Job No. 312?

The predetermined overhead absorption rate (OAR) is based on budgeted figures: OAR = ₦9,600,000 ÷ 40,000 hours = ₦240 per direct labour hour. Overhead absorbed by Job 312 = 350 hours × ₦240 = ₦84,000. Actual overhead figures are used to calculate over/under-absorption for the period, not to absorb overhead to individual jobs; the predetermined rate is always used for job costing.