Net Play 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 labour cost in Department A, direct labour hours in Department B, and machine hours in Department C.

In establishing the predetermined overhead rates for 2014, the following estimates were made for the year.

During January, the job cost sheets showed the following costs and production data.

Instructions
(a) Calculate the predetermined overhead rate for each department.
(b) Calculate the total manufacturing costs assigned to jobs in January in each department.
(c) Calculatetheunder-orover-appliedoverheadforeachdepartmentatJanuary31.

Transcribed Image Text:

Department Manufacturing overhead$720,000 Direct labour cost Direct labour hours Machine hours $600,000 50,000 100,000 $640,000 $100,000 40,000 120,000 $900,000 $600,000 40,000 150,000 artment Direct materials used Direct labour cost Manufacturing overhead incurred Direct labour hours Machine hours 92,000 $48,000 $60,000 4,000 8,000 $86,000 $35,000 $60,000 3,500 10,500 $64,000 $50,400 $72,100 4,200 12,600