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Job order costing Georgia Woods City Furniture

Need to be able to compute predetermined overhead rate. Also the total cost of furniture produced by the manufacturer. Prepare journal entries to the record the sale of furniture on account. Need help in determining the over-or underapplied overhead for each department.

see file for complete data....

Georgia Woods:

Dept 1 Dept 2
Direct labor cost..................................................................... $300,000 $225,000
Direct labor hours................................................................. 20,000 15,000
Manufacturing overhead.................................................... $420,000 $337,500
Machine-hours..................................................................... 12,000 7,500

REQUIRED A: Compute predetermined overhead rates

Job order for City Furniture (job no. 58):

Direct materials cost................................................ Dept 1 Dept 2
Direct labor cost....................................................... $10,000 $7,600
Direct labor hours................................................... $16,500 $11,100
Machine-hours........................................................ 1,100 740

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Solution Summary

Process and computation given in Excel

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