Agassi Company uses a job order cost system in each of its three manufacturing departments.

Agassi Company uses a job order cost system in each of its three manufacturing departments..

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 2017, the following estimates were made for the year.

Department

D

E

K

Manufacturing overhead$1,179,000$1,750,000$1,080,000Direct labor costs$1,684,286$1,875,000$675,000Direct labor hours150,000125,00060,000Machine hours600,000750,000120,000

During January, the job cost sheets showed the following costs and production data.

Department

D

E

K

Direct materials used$210,000$189,000$117,000Direct labor costs$180,000$165,000$56,250Manufacturing overhead incurred$148,500$186,000$118,500Direct labor hours12,00016,5005,250Machine hours51,00067,50010,430

Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 10.25.)

Overhead rateDepartment D

 %Department E$

 per direct labor hourDepartment 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$

 UnderappliedOverapplied

Department E$

 OverappliedUnderapplied

Department K$

 UnderappliedOverapplied

Agassi Company uses a job order cost system in each of its three manufacturing departments.

Leave a Reply