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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
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 2020, the following estimates were made for the year. D K Manufacturing overhead Department E $1,250,000 $1,250,000 125,000 500,000 $1,400,000 $2,000,000 100,000 400,000 Direct labor costs $720,000 $450,000 40,000 120,000 Direct labor hours Machine hours During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours $140,000 $120,000 $99,000 8,000 34,000 $126,000 $110,000 $100,000 11,000 45,000 $78,000 $37,500 $79,000 3,500 10,300 Machine hours (b) Compute the total manufacturing costs assigned to jobs in January in each department. Manufacturing Costs Department D $ Department E $ Department K $
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