4 Dotsero Technology, Incorporated, has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year: Machine-houre Direct labor-hours Direct materials Direct labor Manufacturing overhead Machine-hours Direct labor-hours Direct materials Direct labor Department A 70,000 31,900 $ 214,000 $ 279,000 $.486,500 Job 243 entered into production an April 1 and was completed on May 12. The company's cost records show the following information about the job: Machine-hours Direct labor-hours Direct materials Manufacturing overhead Department A 1,200 355 $ 1,030 $ 800 Department B 20,900 61,900 $ 301,000 $ 539,000 $.809,690 Department A 62,900 29,900 $ 175,000 $ 461,000 Department B 250 310 At the end of the year, the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: $3,000 $ 1,260 Department B 21,900 67,900 $ 303,000 $ 800,000 Required: a. Compute the predetermined overhead rates for Department A and Department B. b. Compute the total overhead cost applied to Job 243. unt of underapplied or gyerapplied overhead in each department at the end of the current year.

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14
Dotsero Technology, Incorporated, has a job-order costing system. The company uses predetermined overhead rates in applying
manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and
the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made
the following estimates for the year:
Machine-hours
Direct labor-hours
Direct materials
Direct labor
Manufacturing overhead
Machine-hours
Direct labor-hours
Direct materials
Direct labor
Job 243 entered into production an April 1 and was completed on May 12. The company's cost records show the following information
about the job:
Machine-hours
Direct labor-hours
Direct materials
Manufacturing overhead
Department A
70,000
31,900
$ 214,000
$ 279,000
$ 486,500
Required A
Department A
1,200
355
Required B Required C
$ 1,030
$ 800
Department B
20,900
61,900
$ 301,000
$ 539,000
$809.690
At the end of the year, the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the
year:
Department A
62,900
29,900
$ 175,000
$ 461,000
Department B
250
310
$3,000
$ 1,260
Required:
a. Compute the predetermined overhead rates for Department A and Department B.
b. Compute the total overhead cost applied to Job 243.
c. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.
Complete this question by entering your answers in the table below.
Department B
21,900
67,900
$ 303,000
$ 800,000
Transcribed Image Text:14 Dotsero Technology, Incorporated, has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year: Machine-hours Direct labor-hours Direct materials Direct labor Manufacturing overhead Machine-hours Direct labor-hours Direct materials Direct labor Job 243 entered into production an April 1 and was completed on May 12. The company's cost records show the following information about the job: Machine-hours Direct labor-hours Direct materials Manufacturing overhead Department A 70,000 31,900 $ 214,000 $ 279,000 $ 486,500 Required A Department A 1,200 355 Required B Required C $ 1,030 $ 800 Department B 20,900 61,900 $ 301,000 $ 539,000 $809.690 At the end of the year, the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: Department A 62,900 29,900 $ 175,000 $ 461,000 Department B 250 310 $3,000 $ 1,260 Required: a. Compute the predetermined overhead rates for Department A and Department B. b. Compute the total overhead cost applied to Job 243. c. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year. Complete this question by entering your answers in the table below. Department B 21,900 67,900 $ 303,000 $ 800,000
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