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 $1,065,000 $1,500,000 $840,000
Direct labor costs $1,500,000 $1,675,000 $603,000
Direct labor hours 134,000 125,000 53,600
Machine hours 536,000 670,000 120,000
During January, the job cost sheets showed the following costs and production data.
Department
D
E
K
Direct materials used $187,600 $168,840 $104,520
Direct labor costs $160,800 $147,400 $50,250
Manufacturing overhead incurred $119,260 $166,160 $99,160
Direct labor hours 10,720 14,740 4,690
Machine hours 45,560 60,300 10,300
Compute the predetermined overhead rate for each department. (Round answers to 3 decimal places, e.g. 15.525.)
D %
E $
K $
Compute the total manufacturing costs assigned to jobs in January in each department.
Department
Manufacturing Costs D
E
K
Direct materials $ $ $
Direct labor
Overhead applied
Total $
$
$
Compute the under or overapplied overhead for each department at January 31. (For negative numbers use either a negative sign preceding the number, e.g. 45 or parenthesis, e.g. (45).)
Department
Manufacturing Overhead D
E
K
Incurred $ $ $
Applied
Under (over) applied $
$
$