Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing...
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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 direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K, Manufacturing Overhead Direct Labor Costs Direct Labor hours D Department E K $1,200,000 $1,500,000 $900,000 $1,500,000 $1,250,000 $450,000 100,000 400,000 125,000 40,000 500,000 120,000 Machine hours During January, the job cost sheets showed the following costs and production data. Direct materials used Direct Labor Costs Manufacturing Overhead Incurred Direct Labor hours Machine hours Department D E K $140,000 $126,000 $78,000 $120,000 $110,000 $37,500 $99,000 $124,000 $79,000 8,000 11,000 3,500 34,000 45,000 10,400 Instructions a.Compute teh predetermined overhead rate for each department b. Compute the total manufacturing costs assigned to jobs in January in each department. c. Compute the under- or overapplied overhead for each department at January 31 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, Manufacturing Overhead Direct Labor Costs Direct Labor hours D Department E K $1,200,000 $1,500,000 $900,000 $1,500,000 $1,250,000 $450,000 100,000 400,000 125,000 40,000 500,000 120,000 Machine hours During January, the job cost sheets showed the following costs and production data. Direct materials used Direct Labor Costs Manufacturing Overhead Incurred Direct Labor hours Machine hours Department D E K $140,000 $126,000 $78,000 $120,000 $110,000 $37,500 $99,000 $124,000 $79,000 8,000 11,000 3,500 34,000 45,000 10,400 Instructions a.Compute teh predetermined overhead rate for each department b. Compute the total manufacturing costs assigned to jobs in January in each department. c. Compute the under- or overapplied overhead for each department at January 31
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a To compute the predetermined overhead rate for each department we divide the estimated manufacturing overhead by the allocation base The allocation ... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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