Question
17 Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each
17
Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining | Customizing | |||
Machine-hours | 16,000 | 17,000 | ||
Direct labor-hours | 3,000 | 4,000 | ||
Total fixed manufacturing overhead cost | $ | 70,400 | $ | 85,000 |
Variable manufacturing overhead per machine-hour | $ | 3.00 | ||
Variable manufacturing overhead per direct labor-hour | $ | 6.00 | ||
During the current month the company started and finished Job K369. The following data were recorded for this job:
Job K369: | Machining | Customizing | |
Machine-hours | 70 | 20 | |
Direct labor-hours | 40 | 80 | |
Required:
Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining | Customizing | |||
Machine-hours | 16,000 | 17,000 | ||
Direct labor-hours | 3,000 | 4,000 | ||
Total fixed manufacturing overhead cost | $ | 70,400 | $ | 85,000 |
Variable manufacturing overhead per machine-hour | $ | 3.00 | ||
Variable manufacturing overhead per direct labor-hour | $ | 6.00 | ||
During the current month the company started and finished Job K369. The following data were recorded for this job:
Job K369: | Machining | Customizing | |
Machine-hours | 70 | 20 | |
Direct labor-hours | 40 | 80 | |
Required:
Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
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