Agassi Company uses a job order cost system in each of its three manufacturingdepartments. Manufacturing overhead is applied to jobs on the basis of direct labor cost inDepartment D, direct labor hours in Department E, and machine hours in Department K.In establishing the predetermined overhead rates for 2014, the following estimateswere made for the year.DepartmentEDKManufacturing overheadDirect labor costsDirect labor hours$1,200,000$1,500,000$1,500,000$1,250,000125,000500,000$900,000$450,00040,000120,000100,000Machine hours400,000During January, the job cost sheets showed the following costs and production data.DepartmentDEKDirect materials used$140,000$120,000$ 99,0008,00034,000$126,000$110,000$78,000$37,500$79,000Direct labor costsManufacturing overhead incurredDirect labor hours$124,00011,0003,500Machine hours45,00010,400(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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a. Compute the predetermined overhead rate for each department. Predetermined Over head…

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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 2014, the following estimates were made for the year. Department D E Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,200,000 $1,500,000 100,000 400,000 $1,500,000 $1,250,000 125,000 500,000 K $900,000 $450,000 40,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D $140,000 $120,000 $ 99,000 E $126,000 $110,000 $124,000 11,000 45,000 K $78,000 $37,500 $79,000 3,500 10,400 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours 8,000 Machine hours 34,000 (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 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 2014, the following estimates were made for the year. Department D E Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,200,000 $1,500,000 100,000 400,000 $1,500,000 $1,250,000 125,000 500,000 K $900,000 $450,000 40,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D $140,000 $120,000 $ 99,000 E $126,000 $110,000 $124,000 11,000 45,000 K $78,000 $37,500 $79,000 3,500 10,400 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours 8,000 Machine hours 34,000 (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.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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