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Unformatted text preview: P24A Acquatic Manufacturing 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 A, direct labor hours in Department B, and machine hours in Department C. (a) Compute the predetermined overhead rate for each department. Department A = Manufacturing overhead/direct labor cost = 930,000/600,000 = 1.55 or 155% Department B = Manufacturing overhead/machine hours = 750,000/150,000 = $20 Department C = Manufacturing overhead/direct labor hours = 800,000/40,000 = $5 (b) Compute the total manufacturing costs assigned to jobs in January in each department. Department A = 92,000 + 48,000 + 48,000(1.55) = 214,400 Department B = 86,000 + 35,000 + 3,500(20) = 191,000 Department C = 64,000 + 50,400 + 12,600(5) = 177,400 (c) Compute the under or over applied overhead for each department at January 31. Applied Overhead Department A = 74,400 Department B = 70,000 Department C = 63,000 Actual Overhead 76,000 74,000 61,500 1,600 (over applied) 4,000 (over applied) (1,500) (under applied) ...
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This note was uploaded on 09/20/2008 for the course ACC 363 taught by Professor Rossi during the Spring '08 term at University of Phoenix.
- Spring '08