| 
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 |  | 
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