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Acquatic Manufacturing 930000

Price: $2.50


Acquatic Manufacturing 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 A, direct labor hours in Department B, and machine hours in
Department C.


   A   B   C 
Manufacturing overhead   930,000  800,000  750,000
Direct labor costs   600,000  100,000  600,000
Direct labor hours   50,000  40,000  40,000
Machine hours   100,000  120,000  150,000

In establishing the predetermined overhead rates for 2005 the following estimates
were made for the year.


   A   B   C 
Direct materials used   92,000  86,000  64,000
Direct labor costs   48,000  35,000  50,400
Manufacturing overhead incurred   76,000  74,000  61,500
Direct labor hours   4,000  3,500  4,200
Machine hours   8,000  10,500  12,600

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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