Reference no: EM132944678

Question - Company uses a job-order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A and machine hours in Department B.

In establishing the predetermined overhead rates for 2020, the following estimates were made for the year:

	Department
	A	B
Manufacturing overhead	$1,056,000	$840,000
Direct labour cost	264,000	600,000
Direct labour hours	12,000	40,000
Machine hours	75,000	84,000

During January, the job cost sheet showed the following costs and production data:

	Jobs
	14	15
Direct materials used	$34,000	$31,000
Direct labour cost	24,000	25,500
Manufacturing overhead incurred	65,000	35,000
Direct labour hours	2,000	1,700
Machine hours	5,000	4,000

Required -

a) Calculate the predetermined overhead rate for each department.

b) Calculate the total manufacturing cost assigned to jobs 14 and 15 in January.