Agassi 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 к $900,000 $450,000 40,000 120,000 $1,200,000 $1,500,000 100,000 400,000 $1,500,000 $1,250,000 125,000 500,000 Manufacturing overhead Direct labor costs Direct labor hours Machine hours During January, the job cost sheets showed the following costs and production data. Department к D $140,000 $120,000 $ 99,000 8,000 34,000 $126,000 $110,000 $124,000 11,000 45,000 $78,000 $37,500 $79,000 3,500 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours 10,400 Instructions (a)Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under- or overapplied overhead for each department at January 31.
Agassi 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 к $900,000 $450,000 40,000 120,000 $1,200,000 $1,500,000 100,000 400,000 $1,500,000 $1,250,000 125,000 500,000 Manufacturing overhead Direct labor costs Direct labor hours Machine hours During January, the job cost sheets showed the following costs and production data. Department к D $140,000 $120,000 $ 99,000 8,000 34,000 $126,000 $110,000 $124,000 11,000 45,000 $78,000 $37,500 $79,000 3,500 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours 10,400 Instructions (a)Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (c) Compute the under- or overapplied overhead for each department at January 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Agassi
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
к
$900,000
$450,000
40,000
120,000
$1,200,000
$1,500,000
100,000
400,000
$1,500,000
$1,250,000
125,000
500,000
Manufacturing overhead
Direct labor costs
Direct labor hours
Machine hours
During January, the job cost sheets showed the following costs and production data.
Department
к
D
$140,000
$120,000
$ 99,000
8,000
34,000
$126,000
$110,000
$124,000
11,000
45,000
$78,000
$37,500
$79,000
3,500
Direct materials used
Direct labor costs
Manufacturing overhead incurred
Direct labor hours
Machine hours
10,400
Instructions
(a)Compute the predetermined overhead rate for each department.
(b) Compute the total manufacturing costs 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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