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Windsor Screen works company, has a job-order costing system. The company uses predetermined overhead rales in applying manufacturing overhead cost to individual jobs. The predetermined
Windsor Screen works company, has a job-order costing system. The company uses predetermined overhead rales in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year 2 3 B 20,000 60,000 Department A Machine-hours 80,000 Direct labour- 30,000 hours Direct materials $240,250 cost Direct labour $ 270,000 cost Manufacturing $420,000 overhead cost $300,000 $ 570.000 $705,000 Job 276 entered into production on June 15 and was completed on July 12th. The com's cost rds show the following information about the job: B 75 Department Machine-hours 450 Direct labour- 70 hours Direct materials $1,000 cost Direct labour $700 cost 140 $1,100 $900 $700 $900 Direct labour cost 3 At the end of the year, the records of Windsor showed the following actual cost and operating data for all jobs worked on during the year: Department A Machine-hours 75,000 Direct labour- 30,000 hours Direct materials $160,000 cost Manufacturing $390,000 overhead cost B 35,000 70,000 $290,000 $705,000 Required: a.) Compute the predetermined overhead rates for Department A and Department B. b.) Cote the toverhead cost applied to Job 243. c.) Compute the anunt of underapplied or overapplied overhead in each department at the end of the current year
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