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. D $034.000 Department E $1.500.000 K $000.000
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. D $034.000 Department E $1.500.000 K $000.000
Chapter1: Financial Statements And Business Decisions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Compute the total manufacturing costs assigned to jobs in January in each department.
Department D
$
Department E $
Department K $
Manufacturing Costs
I
Transcribed Image Text: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.
Manufacturing overhead
Direct labor costs
Direct labor hours
Machine hours
Direct materials used
Direct labor costs
Direct labor hours
D
$924,000
$1,320,000
Machine hours
150,000
Manufacturing overhead incurred
600,000
Department
E
K
$1,500,000
$900,000
$1,875,000 $675,000
During January, the job cost sheets showed the following costs and production data.
D
125,000
12,000
750,000
51,000
K
$210,000
$189,000
$117,000
$180,000
$165,000
$56,250
$148,500 $186,000 $118,500
60,000
120,000
Department
E
16,500
67,500
5,250
10,440
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