Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, e.g. 12.50 and other answers to 0 decimal places, e.g. 25 or 25%.) Department D Department E $ LA Department K Overhead rate % per direct labor hour per machine hour
Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, e.g. 12.50 and other answers to 0 decimal places, e.g. 25 or 25%.) Department D Department E $ LA Department K Overhead rate % per direct labor hour per machine hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
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.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Blossom 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 2022, the following estimates were made for the year.
Manufacturing overhead
Direct labor costs
Direct labor hours
Machine hours
Direct materials used
Direct labor costs
Machine hours
Manufacturing overhead incurred
Direct labor hours
The following information pertains to January 2022 for each manufacturing department.
Department D
Department E $
D
Department K
Department
$
$1,162,800
$1,785,000
$918,000
$1,530,000 $1,275,000 $459,000
102,000 127,500 40,800
E
408,000 510,000 122,400
D
Department
34,680
K
E
$142,800 $128,520 $79,560
$122.400 $112.200
$38,250
$100.980 $126,480 $80,580
Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, e.g. 12.50 and
other answers to O decimal places, e.g. 25 or 25%.)
8,160 11,220 3,570
K
Overhead rate
45,900 10,608
%
per direct labor hour
per machine hour
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education