Question

Problem 3-36A

Agassi 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 2016, the following estimates were made for the year.

		Department
		D		E		K
Manufacturing overhead		$1,400,000		$1,250,000		$720,000
Direct labour costs		$2,000,000		$1,250,000		$450,000
Direct labour hours		100,000		125,000		40,000
Machine hours		400,000		500,000		120,000

During January, the job cost sheets showed the following costs and production data.

		Department
		D		E		K
Direct materials used		$140,000		$126,000		$78,000
Direct labour costs		$120,000		$110,000		$37,500
Manufacturing overhead incurred		$99,000		$100,000		$79,000
Direct labour hours		8,000		11,000		3,500
Machine hours		34,000		45,000		10,300

Question: Fill in the blanks

Calculate the predetermined overhead rate for each department (Round answers to 2 decimal places, e.g. 10.25.) Department D Department Es Department Ks Overhead rate % of direct labour cost per direct labour hour per machine hour LINK TO TEXT LINK TO TEXT Calculate the total manufacturing costs assigned to jobs in January in each department. (Round answers to 0 decimal places, e.g. 2,500.) Manufacturing Costs Department D Department E Department Ks LINK TO TEXT LINK TO TEXT
Thank you so much!

Answer 1

Oveuhead Rate Deportneat D Totat labour coel of Yol6 1400 o00 X10o 2o00 000 direct dabour cot Hanufactiing Jota aisec labous hi ol2016 colt 125000 $101hours Buclaered DH o 8016 Dipatttmint k s চिर्य tal Machine tu o12016 720,400 120 00 $61Machine hours DATE PAGE NO

Total Manuacturing Co& Departmant D labour Cost labau lost $84000 Laboue Hou in Jan x Rate/ daboua houe $ 11000 Machine hou in Joun X Rote /achneha ID300 X 6 $ 618 00 oue appheol Undw inuered APp.০ 84000 Athually 99 000 Co00 (underapplied) 110000 Lo 000 (overapplued) t K 61800-79000 A1 172 00 (unduappled DATE PAGE NO