MA13 Problem: Job Order Costing – Tapem Limited

MA13 Problem: Job Order Costing – Tapem Limited

Tapem Ltd. has two departments, Department I and Department II. Tapem uses a job order system and applies manufacturing overhead to products on the basis of direct labour hours for Department I and machine hours for Department II. At the beginning of the year, Tapem Ltd.estimated the following:Dept. I Dept. IIDirect labour hours 26,0008,000Machine hours 5,00032,000Manufacturing overhead $403,000$352,000 Job number 1368, which produced 65 units, required the following:Dept. IDept. IIDirect materials $845$468Direct labour $1,335$132Direct labour hours 898Machine hours 496 At the end of the year, actual manufacturing overhead was $463,105 for Department I and$347,600 for Department II.In addition, actual direct labour hours and machine hours for Department I and II for the year areas follows:Dept. IDept. IIDirect labour hours 28,5108,200Machine hours 6,15033,400 

Required:1. What is the overhead cost applied to job 1368?

2. What is the under- or over- applied manufacturing overhead for Department I and II for the yea