E15-4 Analyze costs of manufacturing and determine missing amounts.
(LO 2, 6), AN
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Case A Case B Case C
Direct materials used $ (a) $ 83,000 $ 63,150
Direct labor 50,000 140,000 (h)
Manufacturing overhead applied 42,500 (d) (i)
Total manufacturing costs 145,650 (e) 213,000
Work in process 1/1/14 (b) 15,500 18,000
Total cost of work in process 201,500 (f) (j)
Work in process 12/31/14 (c) 11,800 (k)
Cost of goods manufactured 192,300 (g) 222,000

Instructions
(a) Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same.

A) 53,150
B) 55,850
C) 9,200
H) 106,518
I) 43,332
J) 231,000
K) 9,000

P15-4A Compute predetermined overhead rates, apply overhead, and calculate under- or overapplied overhead.
(LO 4, 6), AP
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.
In establishing the predetermined overhead rates for 2014, the following estimates were made for the year. Department D E K
Manufacturing overhead $1,200,000 $1,500,000 $900,000
Direct labor costs $1,500,000 $1,250,000 $450,000
Direct labor hours 100,000 125,000 40,000
Machine hours 400,000 500,000 120,000

During January, the job cost sheets showed the following costs and production data. Department D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead incurred $ 99,000 $124,000 $79,000
Direct labor hours 8,000 11,000 3,500
Machine hours 34,000 45,000 10,400