Question
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
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 Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 28,000 1,000 15,000 1,000 $ 120,400 $ 60,000 $2.50 $5.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job K369: Machine-hours Direct labor-hours Machining Customizing 70 20 40 80 I Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
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