The overhead costs for product Y are estimated to be $160 000 and the activity level is estimated to be 80 000 machine hours. The actual costs are found to be $180 000 and the actual machine hours are 85 000. Under absorption costing this will necessitate an entry to the statement of comprehensive income to record a period cost of $10 000.

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Under absorption costing, overhead costs are applied to products based on the actual activity level. In this case, the actual overhead costs are $180,000 and the actual machine hours are 85,000. Therefore, the overhead cost per machine hour is $180,000 / 85,000 = $2.12. The estimated overhead cost per machine hour is $160,000 / 80,000 = $2.00. Therefore, the difference between the actual and estimated overhead cost per machine hour is $2.12 - $2.00 = $0.12. The total overhead cost variance is $0.12 * 85,000 = $10,200. Since the actual overhead costs are greater than the estimated overhead costs, the overhead cost variance is unfavorable. Therefore, an entry to the statement of comprehensive income is required to record a period cost of $10,200.

The Overhead Costs for Product Y Are Estimated to Be