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Business, 30.08.2021 17:00 deraldw0509
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year.
Department DDepartment EDepartment K
Manufacturing overhead$990,000$1,750,000$1,080,00 0
Direct labor costs$1,237,500$1,875,000$675,000
Direct labor hours150,000125,00060,000
Machine hours600,000750,000120,000
During January, the job cost sheets showed the following costs and production data.
Department DDepartment EDepartment K
Direct materials used$210,000$189,000$117,000
Direct labor costs$180,000$165,000$56,250
Manufacturing overhead incurred$148,500$168,000$118,500
Direct labor hours12,00016,5005,250
Machine hours51,00067,50010,410
Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e. g. 10.25.)
Overhead rate
Department D%
Department E$ per direct labor hour
Department K$ per machine hour
Compute the total manufacturing costs assigned to jobs in January in each department. (Round answers to 0 decimal places, e. g. 2,500.)
Manufacturing Costs
Department D$
Department E$
Department K$
Compute the under- or overapplied overhead for each department at January 31. (Round answers to 0 decimal places, e. g. 2,525.)
Manufacturing Overhead
Department D$ (Underapplied/Overapplied)?
Department E$ (Underapplied/Overapplied)?
Department K$ (Underapplied/Overapplied)?
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Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufact...
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