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Wildhorse Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of
Wildhorse 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 K Manufacturing overhead $1,125,000 $1,625,000 $900,000 Direct labor costs $1,500,000 $1,250,000 $450,000 Direct labor hours 100,000 125,000 40,000 Machine hours 400,000 500,000 120,000 The following information pertains to January 2022 for each manufacturing department, 4 Department K Direct materials used $140.000 $126.000 $78.000 The following information pertains to January 2022 for each manufacturing department. Department E K Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $99,000 $124,000 $79,000 Direct labor hours 8,000 11,000 3,500 Machine hours 34,000 45,000 10,400 (a) Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, eg. 12. other answers to O decimal places, e.g. 25 or 25%) Department D Overhead rate: % Compute the predetermined overhead rate for each department. (Round per machine hour answer to other answers to O decimal places, e.g. 25 or 25%.) Department D Overhead rate % Department E $ per direct labor hour +A Department K $ eTextbook and Media Save for Later per machine hour Attempts: 0 of 5 (b) The parts of this question must be completed in order. This part will be available when you complete the part a
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