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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
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 Department E K Manufacturing overhead $1,280,000 $1,500,000 $840,000 Direct labor costs $1,600,000 $1,312,500 $472,500 Direct labor hours 105,000 125,000 42,000 Machine hours 420,000 525,000 120,000 During January, the job cost sheets showed the following costs and production data. Direct materials used Direct labor costs $126,000 Department D K E $147,000 $132,300 $81,900 $115,500 $39,375 Manufacturing overhead incurred $103,950 $105,000 $82,950 Direct labor hours 8,400 11,550 3,675 Machine hours 35,700 47,250 10,380
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