Media Designs is a marketing firm that designs and prints customized marketing brochures. The design department designs the brochure and the printing department prints and binds it. Each department has separate overhead rates. The following estimates for the two departments were made for the calendar year 2010.

Media Designs uses a budgeted overhead rate to apply overhead to jobs. Direct labor hours are used to allocate overhead in the design department, and direct materials cost is used to allocate overhead in the printing department.

Required:
a. What are the overhead rates for the design and printing departments?
b. A summary of the Matsui job follows:

What are overhead costs for the Matsui job?
c. Actual operating results for 2010 are

Calculate the over/ underapplied overhead for eachdepartment.

Transcribed Image Text:

Design Printing Overhead Direct labor cost Direct materials cost Direct labor hours S 800,000 $3,250,000 $ 8,500 S500.000 $410,000 $250,000 10,000 50,000 Desien Priting Direct materials used Direct labor costs Dinect labor hours 3,000 S46.200 700 $12,000 $28,500 750 Design Printing Overhead Direct labor cost Direct materials cost Direct labor hours S 802,000 $3,193,000 S 11,550 $490,000 $451,500 $230,000 10,500 51,500