Juarez, Inc uses a job order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished goods inventory The Machining Department is heavily automated in contrast, the Assembly Department performs a number of manual assembly activities The company applies manufacturing overhead using machine hours in the Machining Department and direct labor cost in the Assembly Department The following information relates to the year just ended Machining Department Assembly Department Budgeted manufacturing overhead $4,000,000 $3,136,000 Actual manufacturing overhead 4,270,000 3,040,000 Budgeted direct labor cost (based on practical capacity) 1,500,000 5,600,000 Actual direct labor cost 1,450,000 5,780,000 Budgeted machine hours (based on practical capacity) 400,000 100,000 Actual machine hours 425,000 110,000 The data that follow pertain to job no DC66, the only job in production at year end Machining Department Assembly Department Direct material $25,500 $ 6,700 Direct labor $27,800 $58,600 Machine hours 360 150 Selling and administrative expense amounted to $2,500,000 8 value 0 80 points Required information Required 1 Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department 9 value 1 00 points Required information 2 Compute the cost of the companys year end work in process inventory 10 value 1 00 points Required information 3 Determine whether overhead was under or overapplied during the year in the Machining Department 11 value 1 00 points Required information 4 Determine whether overhead was under or overapplied during the year in the Assembly Department 12 value 1 00 points Required information 5 If Juarez disposes of under or overapplied overhead as an adjustment to Cost of Goods Sold, would the companys Cost of Goods Sold account increase or decrease Increase Decrease 13 value 1 00 points Required information 6 How much overhead would have been charged to the companys Work in Process account during the year

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Juarez, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining

Juarez, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended:

	Machining Department	Assembly Department
Budgeted manufacturing overhead	$4,000,000	$3,136,000
Actual manufacturing overhead	4,270,000	3,040,000
Budgeted direct-labor cost (based on practical capacity)	1,500,000	5,600,000
Actual direct-labor cost	1,450,000	5,780,000
Budgeted machine hours (based on practical capacity)	400,000	100,000
Actual machine hours	425,000	110,000

The data that follow pertain to job no. DC66, the only job in production at year-end.

	Machining Department	Assembly Department
Direct material	$25,500	$ 6,700
Direct labor	$27,800	$58,600
Machine hours	360	150

Selling and administrative expense amounted to $2,500,000.

value: 0.80 points

Required information

Required:
1.	Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department.

value: 1.00 points

Required information

2.	Compute the cost of the companys year-end work-in-process inventory.

10.

value: 1.00 points

Required information

3.	Determine whether overhead was under- or overapplied during the year in the Machining Department.

11.

value: 1.00 points

Required information

4.	Determine whether overhead was under- or overapplied during the year in the Assembly Department.

12.

value: 1.00 points

Required information

If Juarez disposes of under- or overapplied overhead as an adjustment to Cost of Goods Sold, would the companys Cost of Goods Sold account increase or decrease?