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Problem 2A-4A Oriole Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the
Problem 2A-4A 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 D K Manufacturing overhead Direct labor costs Direct labor hours Machine hours $ 1,260,000 $ 1,800,000 110,000 440,000 $ 1,625,000 $ 1,375,000 125,000 550,000 $ 960,000 $ 495,000 44,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours $ 154,000 $ 132,000 $ 108,900 8,800 37,400 $ 138,600 $ 121,000 $ 136,400 12,100 49,500 $ 85,800 $ 41,250 $ 86,900 3,850 10,390 Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 12.50.) Overhead rate Department D % Department E per direct labor hour $ Department K per machine hour $ LINK TO TEXT LINK TO TEXT Compute the total manufacturing costs assigned to jobs in January in each department. Manufacturing Costs Department D $ Department E $ Department K $ Compute the under- or overapplied overhead for each department at January 31. Manufacturing Overhead Department D Department E Department K
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