Question

Problem 2-4A (Video) (Part Level Submission) Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on Ehe 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 D Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,170,000 $1,462,500 100,000 400,000 $1,625,000 $1,250,000 125,000 500,000 K. $720,000 $450,000 40,000 120,000 During January, the job cost sheets showed the following costs and production data. Department DE Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours $140,000 $120,000 $99,000 8,000 34,000 $126,000 $110,000 $124,000 11,000 45,000 к $78,000 $37,500 $79,000 3,500 10,430 (a) Your answer has been saved and sent for grading. See Gradebook for score details. Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 12.50 or 12.50%.) Overhead rate Department D 80 % Department Es 13 per direct labor hour Department K & 6 per machine hour Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 1 used You have surpassed the number of attempts to earn Maximum Points for this question. For this attempt, and any subsequent attempt(s), you will earn points according to the Point Potential policy set by your instructor. (b) Compute the total manufacturing costs assigned to jobs in January in each department. Manufacturing Costs Department D Department E Department K Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM By accessing this question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt. The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

b) Total manufacturing cost = Direct material +Direct labor+Manufacturing overhead

Department D (140000+120000*1.80)	356000
Department E (126000+110000+11000*13)	379000
Department K (78000+37500+10430*6)	178080