Compute the predetermined overhead rate for each department

Assignment Help Accounting Basics
Reference no: EM13935304

Agassi 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 2012, 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

 

 

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.

Reference no: EM13935304

Questions Cloud

How h2s can be converted to elemental form of sulphur : How H2S can be converted to elemental form of sulphur? What is the reaction between sodium sulphite and dilute sulphuric acid? Give balanced equation. What is the gas evolved by reaction between sodium sulphite and dilute sulphuric acid? Give ionic e..
Sufficient friction to prevent slipping at the contact point : Determine the force F necessary to hold a drum in the position shown. You may neglect the weight of the dolly in comparison with the 500-lb weight of the drum, whose center of gravity is at G
Description of human resource management : A description of Human resource management is and how recruiting and selecting can help to achieve the organisational goals, using relevant examples where appropriate.
What kind of hardware it runs on and tied in : Conclude with a few sentences providing your own personal overall evaluation of the software and why you make this assessment
Compute the predetermined overhead rate for each department : Agassi Manufacturing Company uses a job order cost system in each of its three manufacturing departments. Compute the predetermined overhead rate for each department
In each case below fill in the missing amount : In each case below, fill in the missing amount.
A jury verdict that a criminal defendant is not guilty : A jury verdict that a criminal defendant is not guilty, or the finding of a judge that the evidence is insufficient to support a conviction is called
Compute the percent change n in the normal forces : Compute the percent change n in the normal forces at A and B as compared with their "engine-off" values.
When do strands of dna form chromosomes : When do strands of DNA form chromosomes? What is a replicated chromosome? How does this differ from a chromosome pair?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd