Question
Swift Limited has two departments, Department A and Department B Swift uses a job order system
and applies manufacturing overhead to products on the basis of direct labour hours for Department
A and machine hours for Department B At the beginning of the year, Swift Limited estimated the
following:
Job which produced units, required the following:
At the end of the year, actual manufacturing overheads were $ for Department A and
$ for Department B
In addition, actual direct labour hours and machine hours for Department A and for the year are:
Instructions:
A Calculate the predetermined overhead rates for each department.
B Calculate the overhead cost applied to Job
C What is the over or under applied manufacturing overhead for Department A & Department
B for the year? Clearly identify the amount and if it is over or under applied.
SHOW ALL YOUR CALCULATIONS FOR FULL MARKS.