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Chapter 20 Ivanhoe Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on
Chapter 20 Ivanhoe 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 2022, the following estimates were made for the year. Department D E K Manufacturing overhead $1,279,800 $1,890,000 $972,000 Direct labor costs $1,620,000 $1,350,000 $486,000 Direct labor hours 108,000 135,000 43,200 Machine hours 432,000 540,000 129,600 The following information pertains to January 2022 for each manufacturing department. Department D E K Direct materials used Direct labor costs $151,200 $136,080 $84,240 $129,600 $118,800 $40,500 Manufacturing overhead incurred $106,920 $133,920 $85,320 Direct labor hours 8,640 11,880 3,780 Machine hours 36,720 48,600 11,232 Question 3 of 6 < (a) Your answer is incorrect. 0/1 Compute the predetermined overhead rate for each department. (Round per machine hour answers to 2 decimal places, e.g. 12.50 and other answers to O decimal places, e.g. 12 or 12%) (b) Department D Department E Department K Overhead rate % EA $ per direct labor hour +A $ per machine hour eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
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