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Sandhill Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of
Sandhill 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 the following estimates were made
for the year.
Department
D E K
Manufacturing overhead $ $ $
Direct labor costs $ $ $
Direct labor hours
Machine hours
The following information pertains to January for each manufacturing department.
Department
D E K
Direct materials used $ $ $
Direct labor costs $ $ $
Manufacturing overhead incurred $ $ $
Direct labor hours
Machine hours
Compute the predetermined overhead rate for each department.
Compute the total manufacturing costs assigned to jobs in January in each department.
Compute the under or overapplied overhead for each department at January
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