Accounting for Decision Making and Control 8th Edition by Jerold Zimmerman

Exercise 17

Media Designs
Media Designs is a marketing firm that designs and prints customized marketing brochures. The design department designs the brochure and the printing department prints and binds it. Each department has separate overhead rates. The following estimates for the two departments were made for the calendar year 2010.
Media Designs uses a budgeted overhead rate to apply overhead to jobs. Direct labor hours are used to allocate overhead in the design department, and direct materials cost is used to allocate overhead in the printing department.
Required:
a. What are the overhead rates for the design and printing departments?
b. A summary of the Matsui job follows:
What are overhead costs for the Matsui job?
c. Actual operating results for 2010 are
Calculate the over/underapplied overhead for each department.