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 2017, the following estimates
were made for the year.
|
|
Department
|
|
|
D
|
|
E
|
|
K
|
Manufacturing overhead
|
|
$1,200,000
|
|
$1,500,000
|
|
$900,000
|
Direct labor costs
|
|
$1,500,000
|
|
$1,250,000
|
|
$450,000
|
Direct labor hours
|
|
100,000
|
|
125,000
|
|
40,000
|
Machine hours
|
|
400,000
|
|
500,000
|
|
120,000
|
During January, the job cost sheets showed the following costs and production
data.
|
|
Department
|
|
|
D
|
|
E
|
|
K
|
Direct materials used
|
|
$140,000
|
|
$126,000
|
|
$78,000
|
Direct labor costs
|
|
$120,000
|
|
$110,000
|
|
$37,500
|
Manufacturing overhead incurred
|
|
$99,000
|
|
$124,000
|
|
$79,000
|
Direct labor hours
|
|
8,000
|
|
11,000
|
|
3,500
|
Machine hours
|
|
34,000
|
|
45,000
|
|
10,400
|
|
can you show the way how to get the answers
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