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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Net Play 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 A, direct labor hours in Department B, and machine hours in Department C.
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In establishing the predetermined overhead rates for 2012, the following estimates were made for the year.
Â
Â
Â
Â
Â
| Â |
Department   |
||
| Â |
A Â Â |
B Â Â |
C Â Â |
|
Manufacturing overhead   |
$720,000 Â Â |
$640,000 Â Â |
$900,000 Â Â |
|
Direct labor cost   |
$600,000 Â Â |
$100,000 Â Â |
$600,000 Â Â |
|
Direct labor hours   |
50,000 Â Â |
40,000 Â Â |
40,000 Â Â |
|
Machine hours   |
100,000 Â Â |
120,000 Â Â |
150,000 |
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