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Problem 15-4A Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the
Problem 15-4A Agassi 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 2014, the following estimates were made for the year Department Manufacturing overhead Direct labor costs Direct labor hours Machine hours $ 1,065,000 $1,500,000 117,000 468,000 1,500,000 852,000 1,462,500 526,500 46,800 120,000 125,000 585,000 During January, the job cost sheets showed the following costs and production data Department Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours $163,800 $147,420 91,260 $140,400 128,700 43,875 115,830 145,080 92,430 4,095 10,500 9,360 39,780 12,870 52,650
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