All jobs at Frankfurt Inc., that uses the job order costing system, go through 2 departments (Fabrication and Assembly). Overhead is applied to jobs based on machine hrs in Fabrication and on labor hrs in Assembly. In December 2009, corporate management evaluated given production data for 2010 in setting the predetermined OH rates:
2 jobs completed during 2010 were #2296 and #2297. Job order cost sheets illustrated given information about the jobs:
Direct labor workers are paid $12 per hour in Fabrication Department and $10 per hour in Assembly Department.
a. Determine predetermined OH rates used in Fabrication and Assembly for 2010.
b. Find direct labor cost related with each job for both departments.
c. Find amount of overhead assigned to every job in each department.
d. Find total cost of Jobs #2296 and #2297.
e. Actual data for 2010 for every department are as follows:
Find amount of underapplied or overapplied overhead for every department for year ended December 31, 2010?