1 Madole Corporation has two production departments, Forming and Customizing. The company uses a job-order 2 costing system and computes a predetermined overhead rate in each production department. The Forming. 3 Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: 4 Customizin 5 Forming 6 Machine-hours 12,000 2,000 7 Direct labor-hours 3,000 9,000 8 Total fixed manufacturing overhead cost $156,000 $60,000 9 Variable manufacturing overhead per machine-hour $2.00 10 Variable manufacturing overhead per direct labor-hour $4.00 11 12 During the current month the company started and finished Job K973. The following data were recorded for 13 this job: Job K973: Customizin Forming 15 Machine-hours 70 15 16 Direct labor-hours 10 60 17 Direct labor rate per hour s 15 s 20 18 Direct materials used s 500 $ 700 19 20 1 Calculate POHR for the two departments 21 22 23 24 25 26 27 28 2 Calculate the total overhead applied to Job K973 in both departments 29 30 31 32 33 34 35 36 3 Calculate the total manufacturing cost ob cost) of Job K973 37 38 39 40 41 42 43 4 If there is a pricing policy of charging a mark-up plus of 65%, what is the price of this job? 45 47 48