Sheridan Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2022, the following estimates were made for the year.
Department
D E K
Manufacturing overhead $ 1,048,800 $ 1,610,000 $ 828,000
Direct labor costs $ 1,380,000 $ 1,150,000 $ 414,000
Direct labor hours 92,000 115,000 36,800
Machine hours 368,000 460,000 110,400
The following information pertains to January 2022 for each manufacturing department.
Department
D E K
Direct materials used $ 128,800 $ 115,920 $ 71,760
Direct labor costs $ 110,400 $ 101,200 $ 34,500
Manufacturing overhead
incurred $ 91,080 $ 114,080 $ 72,680
Direct labor hours 7,360 10,120 3,220
Machine hours 31,280 41,400 9,568
1. Compute the predetermined overhead rate for each department.
2. Compute the total manufacturing costs assigned to jobs in January in each department.
3. Compute the under- or overapplied overhead for each department at January 31.

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600