ACC 349 Week 2 Team Assignment Problems Ch. 2 & 3

-4A Aquatic Manufacturing 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 A, direct labor hours in Department B, and machine hours in Department C.

 

 In establishing the predetermined overhead rates for 2005 the following estimates were made for the year.

 

Department

A                                 B                                 C

Manufacturing overhead                     $930,000                     $800,000                     $750,000

Direct labor cost                                  $600,000                     $100,000                     $600,000

Direct labor hours                               50,000                         40,000                         40,000

Machine hours                                     100,000                       120,000                       150,000

 

During January, the job cost sheets showed the following costs and production data.

 

Department

A                                 B                                 C

Direct materials used                          $92,000                       $86,000                       $64,000

Direct labor cost                                  $48,000                       $35,000                       $50,400

Manufacturing overhead incurred      $76,000                       $74,000                       $61,500

Direct labor hours                               4,000                           3,500                           4,200

Machine hours                                     8,000                           10,500                         12,600

 
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