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Dotsero Technology,Inc.,has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine hours,and the rate in Department B is based on direct materials cost.At the beginning of the most recent year,the company's management made the following estimates for the year:
Job 243 entered into production on April 1 and was completed on May 12.The company's cost records show the following information about the job:
At the end of the year,the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year:
Required:
a.)Compute the predetermined overhead rates for Department A and Department B.
b.)Compute the total overhead cost applied to Job 243.
c.)Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.
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