Problem 2 4A
Agassi 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 2014, the following estimates were made for the year.
Department
D E K
Manufacturing overhead $1,065,000 $1,525,000 $840,000
Direct labor costs $1,500,000 $1,625,000 $585,000
Direct labor hours 130,000 125,000 52,000
Machine hours 520,000 650,000 120,000
During January, the job cost sheets showed the following costs and production data.
Department
D E K
Direct materials used $182,000 $163,800 $101,400
Direct labor costs $156,000 $143,000 $48,750
Manufacturing overhead incurred $128,700 $161,200 $102,700
Direct labor hours 10,400 14,300 4,550
Machine hours 44,200 58,500 10,300
LINK TO TEXT
LINK TO TEXT
Compute the predetermined overhead rate for each department.
Overhead rate
Department D (Round answers to 2 decimal places, e.g. 10.25%.)
%
Department E (Round answers to 2 decimal places, e.g. $10.25.) $
per direct labor hour
Department K (Round answers to 2 decimal places, e.g. $10.25.) $
per machine hour
LINK TO TEXT
LINK TO TEXT
Compute the total manufacturing costs assigned to jobs in January in each department.
Manufacturing Costs
Department D $
Department E $
Department K $
LINK TO TEXT
LINK TO TEXT
Compute the under or overapplied overhead for each department at January 31. (Enter all amounts as positive numbers and select appropriate option from the list.)
Manufacturing Overhead
Department D $
Department E $
Department K $
2 9 part B Prepare an income statement for May through gross profit.
MANTLE COMPANY
(Partial) Income Statement
For the Month Ended May 31, 2014
$
$
:
$
2 11 PART B
Determine the balance of the Service Contracts in Process account.
Balance of Service Contracts in Process account. $
Click if you would like to Show Work for this question: Open Show Work
2 13 PART B
Prepare the entry to apply the overhead for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
Click if you would like to Show Work for this question: Open Show Work
Attachments:
Chapter 2 Par….docx