ACC 560 MART Extraordinary Success/acc560mart.com ACC 560 MART Extraordinary Success/acc560mart.com | Seite 9

(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or over applied and
by how much.
P2-4A
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 lab(); cost in Department D, direct labor
hours in Department E, and machine hours in Department K. In
establishing the predetermined overhead rates for 2017, the following
estimates were made for the year.
During January, the job cost sheets showed the following costs and
production data.
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 over applied overhead for each department
at January 31.
E3-3
the ledger of American Company has the following work in process
account.
Production records show that there were 400 units in the beginning
inventory, 30% complete, 1,600 units started, and 1,700 units
transferred out. The beginning work in process had materials cost of
$2,040 and conversion costs of $1,550. The units in ending inventory