Acc349 Managerial Accounting P2-4A Acquatic Mfg uses a job order cost system

Acc349 Managerial Accounting

P2- 4A Compute predetermined overhead rates, apply overhead, and calculate under- or overapplied overhead.
Acquatic 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

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.
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