Ch 15 activity Landis Company uses a job order cost system in each of its two manufacturing departments Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A and machine hours in Department B. In establishing the predetermined overhead rates for 2008, the following estimates were made for the year Department Manufacturing overhead Direct labor cost Direct labor hours Machine hours $1,750,000 1,400,000 100,000 200,000 $1,600,000 1,200,000 100,000 400,000 During January, the job cost sheet showed the following costs and production data: $195,000 100,000 135,000 8,000 16,000 $128,000 110,000 130,000 8,400 34,000 Direct materials used Direct labor cost Manufacturing overhead incurred Direct labor hours Machine hours Instructions (a) Compute the predetermined overhead rate for each department. b) Compute the total manufacturing cost assigned to jobs in January in each department. (c) Compute the balance in the Manufacturing Overhead account at the end of January and indicate whether overhead is over- or underapplied. Ch 15-2 Activity Vannoy Manufacturing Company makes specialty tools. In January, Vannoy incurs manufacturing costs of $10,000,000 for direct materials, direct labor, and overhead, 25% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were: nu $400,000 600,000 400,000 $500,000 Raw materials Work in process Finished goods 800,000 200,000 At the end of January, there was $1,000 of overapplied overhead. Instructions (a) Determine the cost of raw materials purchased in January (b) Prepare a cost of goods manufactured schedule for January (c) Compute the cost of goods sold for January