Reference no: EM132948186
Question - 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.
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