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Sandhill Company uses a job order cost system in each of its three manufacturing departments. Manufacturir D, direct labor hours in Department E, and machine
Sandhill Company uses a job order cost system in each of its three manufacturing departments. Manufacturir 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. K Manufacturing overhead Direct labor costs Direct labor hours Machine hours D $777,000 $1,110,000 100,000 400,000 Department E $1,500,000 $1,250,000 125,000 500,000 $900,000 $450,000 40,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D K Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours $140,000 $120,000 $99,000 8,000 34,000 $126,000 $110,000 $124,000 11,000 45,000 $78,000 $37,500 $79,000 3,500 10,410
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