Aquatic 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.
Solve for (a), (b), & (c)
Data and instructions attached.
Estimated Predetermined overhead rates
Manufacturing Overhead $930,000.00 $800,000.00 $750,000.00
Direct labor cost $600,000.00 $100,000.00 $600,000.00
Direct labor hours $50,000.00 $40,000.00 $40,000.00
Machine hours $100,000.00 $120,000.00 $150,000.00
January job cost sheets
Direct materials used $92,000.00 $86,000.00 $64,000.00
Direct labor cost $48,000.00 $35,000.00 $50,400.00
Manufacturing overhead incurrred $76,000.00 $74,000.00 $61,500.00
Direct labor hours $4,000.00 $3,500.00 $4,200.00
Machine hours $8,000.00 $10,500.00 $12,600.00
(a) Compute the predetermined overhead rate for each department
Department A overhead is applied on direct labor cost
Department B overhead is applied on direct labor hours
Department C overhead is applied on machine hours
(b) Compute the total manufacturing cost assigned to jobs in January in each
(c) Compute the under/over applied overhead for each department at January 31.
This question was answered on: Sep 16, 2020
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