Question
Sheridan Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of
Sheridan 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 2022, the following estimates were made for the year.
Department | ||||||
---|---|---|---|---|---|---|
D | E | K | ||||
Manufacturing overhead | $ 1,048,800 | $ 1,610,000 | $ 828,000 | |||
Direct labor costs | $ 1,380,000 | $ 1,150,000 | $ 414,000 | |||
Direct labor hours | 92,000 | 115,000 | 36,800 | |||
Machine hours | 368,000 | 460,000 | 110,400 |
The following information pertains to January 2022 for each manufacturing department.
Department | ||||||
---|---|---|---|---|---|---|
D | E | K | ||||
Direct materials used | $ 128,800 | $ 115,920 | $ 71,760 | |||
Direct labor costs | $ 110,400 | $ 101,200 | $ 34,500 | |||
Manufacturing overhead incurred | $ 91,080 | $ 114,080 | $ 72,680 | |||
Direct labor hours | 7,360 | 10,120 | 3,220 | |||
Machine hours | 31,280 | 41,400 | 9,568 |
Compute the total manufacturing costs assigned to jobs in January in each department.
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