Were there any situations in which jobs were costed correctly? if not, when were they overcosted? when were they undercosted? in this particular case, using direct labor hours as an allocation base resulted in undercosting the jobs by $ 22600 . using direct labor cost as an allocation was the best option, causing jobs to be slightly undercosted by $ 3000 during the year. using machine hours led to the least accurate allocation: jobs were overcosted by a total of $ 42500 .

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)