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

Barr Mfg. provided the following information from its accounting records for 2017:

Barr Mfg. provided the following information from its accounting records for 2017:

Expected production	60,000 labor hours
Actual production	56,000 labor hours
Budgeted overhead	$900,000
Actual overhead	$870,000

How much is the overhead application rate if Barr bases the rate on direct labor hours?

$14.50 per hour

$16.07 per hour

$15.00 per hour

$15.54 per hour

Manufacturing overhead is applied to each job

at the time when the overhead cost is incurred.

only if the overhead costs can be directly traced to that job.

at the end of the year when actual costs are known.

by means of a predetermined overhead rate.

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

actual overhead rate.

predetermined overhead rate.

estimated overhead rate.

assigned overhead rate.

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.

Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead.

		Item		Category
1.		Salaries for assembly line inspectors.		Period Costs Direct Materials Direct Labor or Manufacturing Overhead Direct Materials and Manufacturing Overhead
2.		Insurance on factory machines.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
3.		Property taxes on the factory building.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
4.		Factory repairs.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
5.		Upholstery used in manufacturing furniture.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
6.		Wages paid to assembly line workers.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
7.		Factory machinery depreciation.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
8.		Glue, nails, paint, and other small parts used in production.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
9.		Factory supervisors’ salaries.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead
10.		Wood used in manufacturing furniture.		Direct Labor Direct Materials Manufacturing Overhead Direct Materials and Manufacturing Overhead