Answer:
a. Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 10.25.)
Predetermined Over head rate=Estimated Manufacturing Cost/ Estimated Hours (machine hours for K Deptt)
Predetermined Over head rate <em><u>Department D</u></em> = 990,000 + 1237500/150,000 = 2227,500/ 150,00= 14.85
Predetermined Over head rate <em><u>Department E</u></em>= 1750,000+ 1875,000/125,000 = 3625/125,000= 29
Predetermined Over head rate <u><em>Department K</em></u> = 1080,000 + 675,000/120,000= 14.625= 14.63
b. Compute the total manufacturing costs assigned to jobs in January in each department. (Round answers to 0 decimal places, e.g. 2,500).
<u> Department D Total Manufacturing Costs assigne</u>d= 14.85 * 12,000=
$ 178200
<u>Department E Total Manufacturing Costs assigned</u>= 29* 16,500= $478,500
<u>Department K Total Manufacturing Costs assigned</u>= 14.63 *10,410=
$ 152, 298.3
= $ 152,298
Total Manufacturing Costs incurred = <u><em>Direct Material + Direct Labor+ Manufacturing Overheads</em></u>
Department D = $ 210,000 + $140,000 + $148,500= $ 498,500
Department E= $189,000+ $65,000 + $ 168,000= $ 422,000
Department K = $117,000+ $56250 +$ 118,500= $191,750
c. Compute the under- or overapplied overhead for each department at January 31. (Round answers to 0 decimal places, e.g. 2,525.)
Department D = Actual - Assigned= $ 498,500 - $ 178200= $ 320,300
unfavorable
Department E= $ 422,000
- $478,500= $ 56,500 favorable
Department K = $191,750
- $ 152,298= $ 39,452 unfavorable
