50. (Comprehensive) Enforcer Inc. designs and manufactures perimeter fencing for large retail and commercial buildings. Each job goes through three stages:

design, production, and installation. Three jobs were started and completed during the first week of May 2002. There were no jobs in process at the end of April 2002. Information for the three departments for the first week in May follows:

Overhead is applied using departmental rates. Design and Installation use direct labor cost as the base, with rates of 40 and 90 percent, respectively. Production uses machine hours as the base, with a rate of $15 per hour.
Actual overhead in the Design Department for the month was $12,200. Actual overhead costs for the Production and Installation Departments were $7,200 and $3,850, respectively.

a. Determine the overhead to be applied to each job. By how much is the overhead underapplied or overapplied in each department? For the company?

b. Assume no journal entries have been made to Work in Process Inventory.
Make all necessary entries to both the subsidiary ledger and general ledger accounts.

c. Calculate the total cost for each job.

Transcribed Image Text:

DEPARTMENT Production Installation 100 NA 70 NA 90 NA $ 4,250 $1,260 $14,550 $1,300 Job #2019 Direct labor hours Machine hours Direct labor cost Direct material Job #2020 Direct labor hours Design $10,200 $ 1,200 Design Production Installation 85 NA 80 Machine hours NA 300 NA Direct labor cost $8,670 $ 7,450 $1,440 Direct material $1,025 $33,600 $4,600 Job #2021 Design Production Installation Direct labor hours 90 NA 410 Machine hours NA 120 NA Direct labor cost $9,180 $ 2,950 $1,900 Direct material $2,200 $29,000 $1,300