Maurice Tutor

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Category > Accounting Posted 26 Sep 2017 My Price 9.00

Lyon Manufacturing

Lyon Manufacturing 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 F, direct labor hours in Department G, and machine hours in Department H. In establishing the predetermined overhead rates for 2012, the following estimates were made for the year.

   

Department

  
 

F

G

H

Manufacturing overhead

$780,000

$640,000

$750,000

Direct labor cost

$600,000

$100,000

$600,000

Direct labor hours

50,000

40,000

40,000

Machine hours

100,000

120,000

150,000

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

   

Department

  
 

F

G

H

Direct materials used

$92,000

$86,000

$64,000

Direct labor cost

$48,000

$35,000

$50,400

Manufacturing overhead incurred

$66,000

$60,000

$62,100

Direct labor hours

4,000

3,500

4,200

Machine hours

8,000

10,500

12,600

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 overapplied overhead for each department at January 31.

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 07:09 PM My Price 9.00

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