Agassi Company uses a job order cost system in each of its three manufacturing d
ID: 2463437 • Letter: A
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 2014, the following estimates were made for the year. During January, the job cost sheets showed the following costs and production data. Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 1.50 or 1.50%.) Department D % of direct labor cost Compute the total manufacturing costs assigned to jobs in January in each department.Explanation / Answer
Answer a. 0 Predetermined Overhead Rate for each department: Department D - 1230056 / 1501900 = 81.90% of DLC Department E - 1501895/ 1251900 = 119.97% of DLC Department K - 1145860/451900 = 253.56% of DLC Full question is not visible, so I have calculated Predetermined Overhead rate in % of Direct Labor Cost Answer b. Statement of Manufacturing Cost for January Department Manufacturing Costs D E K Direct Matreials 141,900 127,900 79,900 Direct Labor 121,900 111,900 39,400 Overhead Applied 99,836 134,246 99,905 Total 363,636 374,046 219,205