Question: (a) Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, eg. 12.50 and other answers to O
(a) Compute the predetermined overhead rate for each department. (Round per machine hour answer to 2 decimal places, eg. 12.50 and other answers to O decimal places, eg. 25 or 25%.) Overhead rate Department D Department E per direct labor hour Department K per machine hour eTextbook and Media Assistance Used Save for Later Attempts: 0 of 2 used Submit AnswerCullumber Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is app jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2025, the following estimates were made for the year. Department D E K Manufacturing overhead $1,272,000 $1,722,500 $954,000 Direct labor costs $1,590,000 $1,325,000 $477,000 Direct labor hours 106,000 132,500 42,400 Machine hours 424,000 530,000 127,200 The following information pertains to January 2025 for each manufacturing department. Department D E K Direct materials used $148,400 $133,560 $82,680 Direct labor costs $127,200 $116,600 $39,750 Manufacturing overhead incurred $104,940 $131,440 $83,740 Direct labor hours 8,480 11,660 3,710 Machine hours 36,040 47,700 11,024
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Students Have Also Explored These Related Accounting Questions!