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.

		Department
		D		E		K
Manufacturing overhead		$770,000		$1,500,000		$780,000
Direct labor costs		$1,100,000		$1,875,000		$675,000
Direct labor hours		150,000		125,000		60,000
Machine hours		600,000		750,000		120,000

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

		Department
		D		E		K
Direct materials used		$210,000		$189,000		$117,000
Direct labor costs		$180,000		$165,000		$56,250
Manufacturing overhead incurred		$148,500		$186,000		$118,500
Direct labor hours		12,000		16,500		5,250
Machine hours		51,000		67,500		10,480

(a)

Correct answer iconYour answer is correct.

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			70 %
Department E		$	12 per direct labor hour
Department K		$	6.50 per machine hour

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Attempts: 2 of 5 used

(b)

Compute the total manufacturing costs assigned to jobs in January in each department.?

		Manufacturing Costs
Department D		$
Department E		$
Department K		$

Answer 1

Answer Page No Predetermined overhead rate uuuuuu Department D overhead rate Marubackuring overhead direct labor costs $770,000 +07 41,100,000 Department F overhead mate - Manubackwing overhead direct labor hours $1,500,000 125000 $10 per direct labor hour Manufactwing overhead = $6.5 pur machine hour Department k overhead rate Machine hours $780,000 120,000 overhead rate Department D 70% Department E 10 per direct labor hous Department is per machine hour Total manufacturing color comigned to sobo in January direct direct material labor Overhead Total manubacuring costs Department D #210,000 $180,000 180,000x70% = $516,000 $126000 Department E $189000 $ 165000 12x 16500 = 198000 $ 550,000 Department k $ 119,000 $56250|6-5X10480 $241,370 $ 68120 $6.5