Question $1$

Swift Limited has two departments, Department A and Department B$.$ Swift uses a job order system

and applies manufacturing overhead to products on the basis of direct labour hours for Department

A and machine hours for Department B$.$ At the beginning of the year, Swift Limited estimated the

following:

Job $1497$ which produced $45$ units, required the following:

At the end of the year, actual manufacturing overheads were $$739,000$ for Department A and

$$500,000$ for Department B$.$

In addition, actual direct labour hours and machine hours for Department A and $B$ for the year are:

Instructions:

A$.$ Calculate the predetermined overhead rates for each department.

B$.$ Calculate the overhead cost applied to Job $1497.$

C$.$ What is the over or under applied manufacturing overhead for Department A & Department

B for the year? Clearly identify the amount and if it is over or under applied.

SHOW ALL YOUR CALCULATIONS FOR FULL MARKS.