Question

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 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. D Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,280,000 $1,600,000 105,000 420,000 Department E $1,500,000 $1,312,500 125,000 525,000 K $840,000 $472,500 42,000 120,000 During January, the job cost sheets showed the following costs and production data. Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours D $147,000 $126,000 $103,950 8,400 35.700 Department E $132,300 $115,500 $ 105,000 11,550 47.250 K $81.900 $39,375 $82,950 3,675 10,380

Answer 1

Requirement (1) Department D Department E Department K Overhead Rate 80.00% 12.00 Per Direct Labour Hour 7.00 Per Machine Hour 0 0 $ Requirement (2) Manufacturing Costs Department D $ 373,800 Department E $ 386,400 Department K $ 193,935 Requirement (3) Department D Department E Department K $ $ $ Manufacturing Overhead 3,150 Underapplied 33,600 Overapplied 10,290 Underapplied Note : Do Comment For Any Further Assistance