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Required information [The following information applies to the questions displayed below. Garcia, Inc., uses a job-order costing system for its products, which pass from the

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Required information [The following information applies to the questions displayed below. Garcia, Inc., uses a job-order costing system for its products, which pass from the Machining Department to the Assembly Department, to finished goods inventory The Machining Department is heavily automated in contrast the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended Machining Assembly Department Department Budgeted manufacturing overhead $4,000,000 $3,024,000 Actual manufacturing overhead 4,270,000 3,040,000 Budgeted direct labor cost (based on practical capacity) 1,500,000 5,600,000 Actual direct-labor cost 1,450,000 5,780,000 Budgeted machine hours (based on practical capacity) 400,000 100,000 Actual machine hours 425,000 110,000 The data that follow pertain to job no. 775, the only Job in production at year-end, Machining Assembly Department Department Direct material $25,500 $ 6,700 Direct labor $27,700 $58,700 Machine hours 150 370 Selling and administrative expense amounted to $2,500,000 Required: 1. Assuming the use of normal costing determine the predetermined overhead rates used in the Machining Department and the Assembly Department. Machining department Assembly department Predetermined overhead rate per machine hour % of direct labor cost 2. Compute the cost of the company's year-end work-in-process inventory. Total cost 3. Determine whether overhead was under or overapplied during the year in the Machining Department Underapplied overhead 4. Determine whether overhead was under- or overapplied during the year in the Assembly Department. Answer is not complete. Overapplied overhead 6. How much overhead would have been charged to the company's Work-in-Process account during the year? Overhead charged to Work-in-process account

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