W2 P2-4A - Wrong - 4,000 3,500 4,200 Machine hours 8,000...

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P2-4A 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. In establishing the predetermined overhead rates for 2005 the following estimates were made for the year. Department A B C Manufacturing overhead 930,000 800,000 750,000 Direct labor cost 600,000 100,000 600,000 Direct labor hours 50,000 40,000 40,000 Machine hours 100,000 120,000 150,000 During January, the job cost sheets showed the following costs and production data. Department A B C Direct materials used 92,000 86,000 64,000 Direct labor cost 48,000 35,000 50,400 Manufacturing overhead inc 76,000 74,000 61,500 Direct labor hours
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Unformatted text preview: 4,000 3,500 4,200 Machine hours 8,000 10,500 12,600 (a) Compute the predetermined overhead rate for each department. Department 1 Department 3 Department 1 (b) Compute the total manufacturing costs assigned to jobs in January in each department. Department A B C Direct materials used 92,000 86,000 64,000 Direct labor 48,000 35,000 50,400 Direct labor hours 4,000 3,500 4,200 Machine hours 8,000 10,500 12,600 Manufacturing overhead 74,400 150,769 63,797 Total manufacturing cos 226,400 285,769 194,997 (c) Compute the under- or overapplied overhead for each department at January 31. Department A B C Actual manufacturing overhead 76,000 74,000 61,500 Applied overhead cost 74,400 150,769 63,797 Overapplied / (Underapplied) overhe (1,600) 76,769 2,297...
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