Question

can someone please tell me the correct answer and why i did wrong?

Problem 15-04A - (Video) 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 2020, the following estimates were made for the year. Department Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,240,000 $1,550,000 120,000 480,000 $1,625,000 $1,500,000 125,000 600,000 $1,020,000 $540,000 48,000 120,000 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 $168,000 $144,000 $118,800 9,600 40,800 $151,200 $93,600 $132,000 $45,000 $148,800 $94,800 13,2004 ,200 54,000 10,330 Your answer is correct. decimal places . 1 2.50 or 12.50 Compute the predetermined overhead rate for each department (Round answers to Overhead rate

Answer 1

ANSWER 1 COMPUTATION PREDETERMINED OVERHEAD RATE DEPARTMENT K MANUFACTURING OVERHEAD DIRECT LABOUR COST 1240000 1625000 1020000 1550000 1500000 ADD: 540000 MANUFACTUTRING COST (TOTAL COST) 2790000 3125000 1560000 MACHINE HOURS 480000 600000 120000 MANUFACTURING OVERHEAD/TOTAL COST *100 OVERHEAD RATE: 1240000/ 1625000/ 1020000/ 3125000 1560000 2790000 44.44444 52 65.38462 REQUIRED OVERHEAD RATE FOR DEPT D,E,K ATR 44.44%,52%,65.38%

ANSWER 2 COMPUTATION OVERHEAD RATE FOR JAN-2020 DEPARTMENT 1. DIRECT MATERIAL COST 168000 151200 93600 ADD 2. DIRECT LABOUR COST 144000 45000 132000 3.PRIME COST (1+2) 4. MANUFACTURING OVERHEAD 312000 283200 138600 ADD 148800 94800 118800 MANUFACTUTRING COST (TOTAL COST) (3+4) 432000 430800 233400