Crane Company uses a job order cost system in each of its three manufacturing departments. Manufacturing...
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Crane 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 2025, the following estimates were made for the year. Department D E K Manufacturing overhead $1,216,800 $1,560,000 $936,000 Direct labor costs $1,560,000 $1,300,000 $468,000 Direct labor hours 104,000 130,000 41,600 Machine hours 416,000 520,000 124,800 The following information pertains to January 2025 for each manufacturing department. Department D E K Direct materials used Direct labor costs Manufacturing overhead incurred $145,600 $131,040 $81,120 $124,800 $114,400 $39,000 $102.960 $128,960 $82,160 Direct labor hours Machine hours 8,320 11,440 3,640 35,360 46,800 10,816 (a) SUPPORT 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%.) Crane 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 2025, the following estimates were made for the year. Department D E K Manufacturing overhead $1,216,800 $1,560,000 $936,000 Direct labor costs $1,560,000 $1,300,000 $468,000 Direct labor hours 104,000 130,000 41,600 Machine hours 416,000 520,000 124,800 The following information pertains to January 2025 for each manufacturing department. Department D E K Direct materials used Direct labor costs Manufacturing overhead incurred $145,600 $131,040 $81,120 $124,800 $114,400 $39,000 $102.960 $128,960 $82,160 Direct labor hours Machine hours 8,320 11,440 3,640 35,360 46,800 10,816 (a) SUPPORT 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%.)
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Accounting Tools for business decision making
ISBN: 978-0470095461
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Authors: kimmel, weygandt, kieso
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