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This paperwork ACC 349 Week 2 Team includes solution of these tasks:

P2-4A Acquatic Manufacturing uses a job order cost method in each of its 3 production divisions. Production overhead is applied to works on the basis of direct labor cost in Division A, direct labor hours in Division B, and machine hours in Division C.

(a) Calculate the fixed overhead rate for each department.

A = $930,000 / $600,000 = 155% of Direct Labor Cost

B = $800,000 / 40,000 Direct Labor Hours = $20 per Direct Labor Hour

C = $750,000 / 150,000 Machine Hours = $5 per Machine Hour

(b) Calculate the total production costs allotted to jobs in January in each division.

(c) Compute the under- or overapplied overhead for each department at January 31.

and also the dolutions of exercises P3-3A, BYP 2-2.

Solution:

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