1. Navarro Manufacturing uses a job order cost system in each of its three manufacturing department Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours i department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2022, the following estimates were made for the year. Manufacturing overhead Direct labor cost Direct labor hours Machine hours A $900,000 $600,000 50,000 100,000 Direct materials used Direct labor cost During January, the job cost sheets showed the following costs and production data: Manufacturing overhead incurred Direct labor hours Machine hours Department B $760,000 $100,000 40,000 120,000 A $92,000 $48,000 $76,000 4,000 8,000 Department B $86,000 $35,000 $67,000 3,500 10,500 C $780,000 $600,000 50,000 150,000 C $64,000 $50,400 $64,500 4,200 12,600 Instructions: a. Compute the predetermined overhead rate for each department b. Compute the total manufacturing cost assigned to jobs in January in each department. c. Compute the under- or overapplied overhead for each department at January 31.
1. Navarro Manufacturing uses a job order cost system in each of its three manufacturing department Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours i department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2022, the following estimates were made for the year. Manufacturing overhead Direct labor cost Direct labor hours Machine hours A $900,000 $600,000 50,000 100,000 Direct materials used Direct labor cost During January, the job cost sheets showed the following costs and production data: Manufacturing overhead incurred Direct labor hours Machine hours Department B $760,000 $100,000 40,000 120,000 A $92,000 $48,000 $76,000 4,000 8,000 Department B $86,000 $35,000 $67,000 3,500 10,500 C $780,000 $600,000 50,000 150,000 C $64,000 $50,400 $64,500 4,200 12,600 Instructions: a. Compute the predetermined overhead rate for each department b. Compute the total manufacturing cost assigned to jobs in January in each department. c. Compute the under- or overapplied overhead for each department at January 31.
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Transcribed Image Text:1. Navarro Manufacturing 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 A, direct labor hours in
department B, and machine hours in Department C.
In establishing the predetermined overhead rates for 2022, the following estimates were made for the
year.
Manufacturing overhead
Direct labor cost
Direct labor hours
Machine hours
A
$900,000
$600,000
50,000
100,000
Direct materials used
Direct labor cost
Manufacturing overhead incurred
Direct labor hours
Machine hours
Department
B
During January, the job cost sheets showed the following costs and production data:
A
$92,000
$48,000
$76,000
4,000
8,000
$760,000
$100,000
40,000
120,000
Department
B
$86,000
$35,000
$67,000
3,500
10,500
C
$780,000
$600,000
50,000
150,000
C
$64,000
$50,400
$64,500
4,200
12,600
Instructions:
a. Compute the predetermined overhead rate for each department
b. Compute the total manufacturing cost assigned to jobs in January in each department.
c. Compute the under- or overapplied overhead for each department at January 31.
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