Job Order Costing

Agassi 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,

Instructions

  1. Compute teh predetermined overhead rate for each department
  2. Compute the total manufacturing costs assigned to jobs in January in each department.
  3. Compute the under- or overapplied overhead for each department at January 31

Solution

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