Ivanhoe Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead
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Question:
Ivanhoe 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 labor cost in Department D direct labor hours in Department E and machine hours in Department K
In establishing the predetermined overhead rates for the following estimates were made for the year.
Department
D
E
K
Manufacturing overhead
$
$
$
Direct labor costs
$
$
$
Direct labor hours
Machine hours
The following information pertains to January for each manufacturing department.
Department
D
E
K
Direct materials used
$
$
$
Direct labor costs
$
$
$
Manufacturing overhead incurred
$
$
$
Direct labor hours
Machine hours
a
Compute the predetermined overhead rate for each department. Round per machine hour answer to decimal places, eg and other answers to decimal places, eg or
Overhead rate
Department D
enter percentages rounded to decimal places
Department E
$enter a dollar amount per direct labor hour rounded to decimal places
per direct labor hour
Department K
$enter a dollar amount per machine hour rounded to decimal places
per machine hour
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
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