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Homework answers / question archive /  1)Navarro Manufacturing uses a job order cost system in each of its three manufacturing departments

 1)Navarro Manufacturing uses a job order cost system in each of its three manufacturing departments

Accounting

 1)Navarro 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 2022, the following estimates were made for the year. Manufacturing overhead Direct labor cost Direct labor hours Machine hours A $900,000 $600,000 50,000 100,000 Department B $760,000 $100,000 40,000 120,000 ? $780,000 $600,000 50,000 150,000 During January, the job cost sheets showed the following costs and production data: Direct materials used Direct labor cost Manufacturing overhead incurred Direct labor hours Machine hours A $92,000 $48,000 $76,000 4,000 8,000 Department B $86,000 $35,000 $67,000 3,500 10,500 ? $64,000 $50,400 $64,500 4,200 12,600 Instructions: a. Compute the predetermined overhead rate for each department b. Compute the total manufacturing cost 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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