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

Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November

Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

		Lynn		Brian		Mike
Direct materials		$600		$400		$200
Auditor labor costs		$5,400		$6,600		$3,375
Auditor hours		72		88		45

Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $50 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.

(a) Determine the cost of each job.

		Cost
Lynn		$
Brian		$
Mike		$

(b) Indicate the balance of the Service Contracts in Process account at the end of November.

Balance in service contracts in process account

$

(c) Calculate the ending balance of the Operating Overhead account for November.

Balance in operating overhead account

$

Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000

Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000.

Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Overhead rate per direct labor cost			%
Overhead rate per direct labor hour		$
Overhead rate per machine hour		$

For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was $115,000.

Your answer is correct. Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied

Your answer is correct. Determine the amount of under- or overapplied manufacturing overhead. Underapplied Overapplied  manufacturing overhead $