Job 007 entered into production on June 1 and was completed on July 12th. The company's...

 

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Job 007 entered into production on June 1 and was completed on July 12th. The company's cost records show the following information about the job: Machine-hours Direct labour-hours Direct materials cost Direct labour cost Department A B 450 75 70 140 $1,000 $1,100 $700 $900 At the end of the year, the records of James Bond, Inc. showed the following actual cost and operating data for all jobs worked on during the year: Department A B Machine-hours 75,000 35,000 Direct labour-hours 30,000 70,000 Direct materials cost $160,000 $290,000 Manufacturing overhead cost $390,000 $705,000 Required: 1. Compute the predetermined overhead rates for Department A and Department B 2. Compute the total overhead cost applied to Job 007. 3. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year. Job 007 entered into production on June 1 and was completed on July 12th. The company's cost records show the following information about the job: Machine-hours Direct labour-hours Direct materials cost Direct labour cost Department A B 450 75 70 140 $1,000 $1,100 $700 $900 At the end of the year, the records of James Bond, Inc. showed the following actual cost and operating data for all jobs worked on during the year: Department A B Machine-hours 75,000 35,000 Direct labour-hours 30,000 70,000 Direct materials cost $160,000 $290,000 Manufacturing overhead cost $390,000 $705,000 Required: 1. Compute the predetermined overhead rates for Department A and Department B 2. Compute the total overhead cost applied to Job 007. 3. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

Answer rating: 100% (QA)

Answer 1 Predetermined Overhead Rates To calculate the predetermined overhead rates for Department A and Department B we need to divide the total esti... View the full answer