Question
Bampf Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Bampf Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly 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:
| Forming | Assembly | ||
Machine-hours |
| 19,000 |
| 15,000 |
Direct labor-hours |
| 4,000 |
| 8,000 |
Total fixed manufacturing overhead cost | $ | 129,200 | $ | 77,600 |
Variable manufacturing overhead per machine-hour | $ | 1.50 |
|
|
Variable manufacturing overhead per direct labor-hour |
|
| $ | 4.00 |
During the current month the company started and finished Job AA22. The following data were recorded for this job:
Job AA22: | Forming | Assembly | |||
Machine-hours |
| 80 |
| 10 | |
Direct labor-hours |
| 40 |
| 30 | |
Direct materials | $ | 730 | $ | 380 | |
Direct labor cost | $ | 900 | $ | 1,200 | |
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|
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| |
Calculate the predetermined overhead rate in each department and the total manufacturing costs for Job 57GT.
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