Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oriole Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Oriole 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 2020, the following estimates were made for the year. Department K $1.240,000 $1,550,000 $720,000 Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1.250,000 $1,500,000 $540,000 120.000 125,000 48.000 480,000 600,000 120,000 During January, the job cost sheets showed the following costs and production data. Nonant During January, the job cost sheets showed the following costs and production data Department D E K $168,000 $151.200 $93,600 $144,000 $132,000 $45,000 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours $118.800 $120,000 $94,800 9,600 13,200 4,200 Machine hours 40,800 54,000 10,470 (a) Your answer is correct. Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, es. 12.50 or 12.50%) Overhead rate Department D 80 %6 Department E $ 10.00 per direct labor hour Department $ 600 per machine hour e Textbook and Media Attameter 1 of Your Answer Correct Answer Your answer is correct. Compute the total manufacturing costs assigned to jobs in January in each department Manufacturing Costs Department D $ 427200 Department E $ 415200 Department $ 201420 (c) Compute the under-or overapplied overhead for each department at January 31. Manufacturing Overhead Department D $ Underapplied Overapplied Department E $ Department $ e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

European Financial Reporting Adapting To A Changing World

Authors: J. Flower

2nd Edition

0333685180, 9780333685181

More Books

Students also viewed these Accounting questions