Problem 15-4A (Part Level Submission) 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 D E K Manufacturing overhead $ 1,050,000 $1,500,000 $ 852,000 Direct labor costs $ 1,500,000 $ 1,462,500 $ 526,500 Direct labor hours 117,000 125,000 46,800 Machine hours 468,000 585,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used > $ 163,800 $ 147,420 $ 91,260 Direct labor costs > $ 140,400 $ 128,700 $ 43,875 Manufacturing overhead incurred > $ 115,830 $ 145,080 $ 92,430 Direct labor hours > 9,360 12,870 4,095 Machine hours > 39,780 52,650 10,500 Question part is: (A) Compute the predetermined overhead rate for each department. (i)Overhead rate Department D (Round answers to 2 decimal places, e.g. 10.25%.) %. (ii)Department E (Round answers to 2 decimal places, e.g. $10.25.) $ per direct labor hour. (iii)Department K (Round answers to 2 decimal places, e.g. $10.25.) $ per machine hour. Comment Expert Answer NamanG NamanG answered this 8 minutes later Was this answer helpful? 0 1 1,673 answers Statement showing computations Particulars Deptt D Deptt E Deptt K Manufacturing Overhead - Estimated 1,050,000.00 1,500,000.00 852,000.00 Basis of allocation Direct Labour Cost Direct Labour hours Machine Hours Direct Labour Costs 1,500,000.00 Predetermined overhead rate = O/h/ DLC = 1,050,000/1,500,000 70.00% Direct Labour Hour 125,000.00 Predetermined overhead rate = O/h/ Labour Hours = 1,500,000/125,000 12.00 Machine Hours 120,000.00 Predetermined overhead rate = O/h/ Machine hours = 852,000/120,000 7.10

My Question is:

Compute the total manufacturing costs assigned to jobs in January in each department. Manufacturing Costs Department D $ Department E $ Department K $