Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis

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

Your answer is correct. Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 12.50.) Overhead rate Department D  % Department E $  per direct labor hour Department K $  per machine hour

Your answer is correct. Compute the total manufacturing costs assigned to jobs in January in each department. (Round answers to 0 decimal places, e.g. 2,500.) Manufacturing Costs Department D $ Department E $ Department K $

Your answer is correct. Compute the under- or overapplied overhead for each department at January 31. (Round answers to 0 decimal places, e.g. 2,500.) Manufacturing Overhead Department D $ Underapplied Overapplied Department E $ Underapplied Overapplied Department K $ Underapplied Overapplied

In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700

In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. During January, time tickets show that the factory labor of $6,000 was used as follows: Job 1 $2,200, Job 2 $1,600, Job 3 $1,400, and general factory use $800.

Prepare the job cost sheets for each of the three jobs.

Job 1
Date		Direct Materials		Direct Labor
1/31

Job 2
Date		Direct Materials		Direct Labor
1/31

Job 3
Date		Direct Materials		Direct Labor
1/31

Sam Bowden believes actual manufacturing overhead should be charged to jobs. Do you agree?

Disagree Agree