Dotsero Technology, Inc

Essay

Dotsero Technology, Inc., has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct materials cost.At the beginning of the most recent year, the company's management made the following estimates for the year: Job 243 entered into production an April 1 and was completed on May 12.The company's cost records show the following information about the job: At the end of the year, the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: Required:
a.Compute the predetermined overhead rates for Department A and Department B.
b.Compute the total overhead cost applied to Job 243.
c.Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.