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(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 were 40% complete. Materials are
entered at the beginning of the painting process.