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Question 1 Swift Limited has two departments, Department A and Department B. Swift...

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Accounting

Question 1
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 1497 which produced 45 units, required the following:
At the end of the year, actual manufacturing overheads were $739,000 for Department A and
$500,000 for Department B.
In addition, actual direct labour hours and machine hours for Department A and B for the year are:
Instructions:
A. Calculate the predetermined overhead rates for each department.
B. Calculate the overhead cost applied to Job 1497.
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.
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