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Are these correct? Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate
Are these correct?
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 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: Machine-hours 1000 Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 24,000 15,000 2000 $ 108,000 $ 70,500 $ 1.50 $ 3.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job K369: Machining - 60 Machine-hours Customizing 30 60 Direct labor-hours Required: Calculate the following: Predetermined OH rate for Machining (round to 2 decimal places) $ 6.00 Predetermined OH rate for Customizing (round to 2 decimal places) $ 38.25 Total Amount of OH applied to job K369 through both departments (do not include commas) $ 2655Step by Step Solution
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