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Linus Company manufactures specialty tools to customer order. There are three production departments. To apply overhead costs, Department A uses direct labor cost, Department Buses

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Linus Company manufactures specialty tools to customer order. There are three production departments. To apply overhead costs, Department A uses direct labor cost, Department Buses machine hours, and Department C uses direct labor hours. The following actual production information is available for each department for the month of January: Dept A Dept B Dept C Factory Overhead $147,000 $120,150 $93,440 Costs Direct Labor $122,500 $52,500 $182,500 Cost Direct Labor 4,900 2.1001 7,300 Hours Used Machine Hours 1,350 8.900 3,700 Used 8,900 REQUIRED: Assuming that Linus Company uses actual costing: A. Compute the actual factory overhead rate for the month of January for each department. Dept A: per direct labor dollar Dept B: per machine hour Dept C: per direct labor hour B. If one of the jobs produced in Department A in January incurred $4,200 of direct labor costs, how much overhead cost would be applied to that unit? Assuming that Linus Company uses normal costing and the following budgeted information is available for the year: Factory Overhead Direct Labor Cost Direct Labor Hours Dept A $1,885,000 $1,450,000 58,000 16,500 Dept B $1,452,000 $640,000 24,600 Dept C $1,089,900 $2.150,000 86,500 Machine Hours 110,000 41.2001 Required: C. Compute the pre-determined annual factory overhead rate for each department. Dept A: per direct labor dollar Dept B: per machine hour Dept C: per direct labor hour D. Compute the factory overhead that will be applied in each department in January Dept A: Dept B: Dept C: E. Compute the over or under applied factory overhead for each department at the end of January. Type in U for under applied or O for over applied in the box next to your amount. Dept A: Dept B: Dept C

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