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Sunland 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
Sunland 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 labour cost in Department D, direct labour 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 $938.000 $1,500,000 $720,000 Direct labour costs $1,340,000 $1,875,000 $675,000 Direct labour hours 150,000 125,000 60,000 Machine hours 600.000 750,000 120.000 flation pertains to January 2022 for each manufacturing department. Department E K Direct materials used $210,000 $189,000 $117,000 Direct labour costs $180,000 $165,000 $56,250 Manufacturing overhead incurred $131,000 $188,000 $64,500 Direct labour hours 12,000 16.500 5,250 Machine hours 51,000 67,500 10,480 Calculate the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 10.25.) Department D Department E Department K eTextbook and Media Overhead rate % of direct labour cost per direct labour hour per machine hour Calculate the total manufacturing costs assigned to jobs in January in each department. Department D $ Department E Department K $ Manufacturing Costs eTextbook and Media Calculate the under- or over-applied overhead for each department at January 31. Department D Department E Department K eTextbook and Media Manufacturing Overhead
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