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u t of goods manufactured schedule for June ninished jobs P16-4A Agassi Company uses a job order cost system in each of its three manufactur-
u t of goods manufactured schedule for June ninished jobs P16-4A Agassi Company uses a job order cost system in each of its three manufactur- ing 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 2017, the following estimates were made for the year. Department D Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,200,000 $1,500,000 100,000 400,000 $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 Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours D $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 10,400 Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in eac department (c) Compute the under- or overapplied overhead for each department at January 31
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