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P2-4B Net Play Copany uses a job order cost systern in each of its three manufacturing Compute predetermined departments. Manufacturing overhead is applied to jobs
P2-4B Net Play Copany uses a job order cost systern in each of its three manufacturing Compute predetermined departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in overhead raies, apply Department A, direct labor hours in Department B, and machine hours in Departmen C. overhead, and cnlculaie In establishing the predetermined overhead rates for 2014, the following estimates underor overapplied were made for the year. overhead. LO 4, 6),AP Department Marnufacturing overhead $720,000 $640,000 900,000 Direct labor cost Direct labor hours Machine hours $600,000 50,000 100,000 $100,000 40,000 120,000 $600,000 40,000 150,000 During January, the job cost sheets showed the following costs and production data. Departrnent Direct materials used Direct labor cost Manufacturing overhead incurred Direct labor hours Machine hours $92.000 $86,000 $64,000 $48,000 $35,000 $50,400 $72,100 $60,000 $60,000 3,500 4,000 8,000 4,200 12,600 10,500 (a) 120%, $16.55 (tb) $197,6c0, S177,000, Instructions (a) Compute the predetermined overhead rate for each department b) Compute the total manufactuing costs assigned to jobs in January in cach department. 5190,oco (c) Compute the under- or overapplied overhead for each department at January 31 () $2,400 $4,000, $3,500
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