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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
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 In establishing the predetermined overhead rates for 2020, the following estimates were made for the year. Department D K $1.240,000 $1.250.000 $720,000 $1,550,000 $1.500.000 $540,000 Manufacturing overhead Direct labor costs Direct labor hours Machine hours 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. Department During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used $168,000 $151,200 $93,600 Direct labor costs $144,000 $45,000 Manufacturing overhead incurred $132,000 $120,000 $118,800 $94,800 Direct labor hours 9,600 13,200 4.200 Machine hours 40,800 54.000 10,470 Compute the under-or overapplied overhead for each department at January 31. Manufacturing Overhead Department D $ Department E Department K $ e Textbook and Media
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