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Mabry Manufacturing Company uses a job order cost system in each of its three

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P20-4A Mabry Manufacturing 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 2010 the following estimates were
made for the year.


 D   E   K 
Manufacturing overhead   1,050,000  1,500,000  840,000
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.


   D   E   K 
Direct materials used   140,000  126,000  78,000
Direct labor costs   120,000  110,000  37,500
Manufacturing overhead incurred   89,000  124,000  74,000
Direct labor hours   8,000  11,000  3,500
Machine hours   34,000  45,000  10,400

Instructions

(a) Compute the predetermined overhead rate for each department.

(b) Compute the total manufacturing costs assigned to jobs in January in each department.

(c) Compute the under- or overapplied overhead for each department at January 31.

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