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Bulla Corporation has two praduction departments, Machiring and Custornizing.The oompany uses a job-order casting system and computes a predetermiined overhead rate in each praduction department.
Bulla Corporation has two praduction departments, Machiring and Custornizing.The oompany uses a job-order casting system and computes a predetermiined overhead rate in each praduction department. The Machining Department's predeternined averhead rate is based an machine-hours and the Custornizing Department's predetermined averhead rate is based on drect labor-hours. At the begirning of the current year, the company had made the following estimates: Machining Customlzng 24,000 15DO 2000 S 70,500 Direct labar-hau Total fixed manufacturing overhead cost 108,000 Variable manufacturing ovemead per variable manufectuing ovemead per $ 1.50 direct labar-hour S 3.00 During the current month the company started and finished Job K369. The tollowing data were recorded for this job: Job K365 Machina-hars Direct labor-hours Machining Customizing 40 Required: the following: Predetermned OH rate for (round to 2 decimel places) Prodetermnad OH rata tar Customizing (raund ta 2 decimal places) applied to job $ K369 through both departments (do not inc uda commas)
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