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Bulla Corporation has two production departments, Machining and Customizing. The company uses a job - order costing system and computes a predetermined overhead rate in
Bulla Corporation has two production departments, Machining and Customizing. The company uses a joborder costing system and computes a predetermined overhead rate in each production department. The Machining Departments predetermined overhead rate is based on machinehours and the Customizing Departments predetermined overhead rate is based on direct laborhours. At the beginning of the current year, the company had made the following estimates:
Machining Customizing
Machinehours
Direct laborhours
Total fixed manufacturing overhead cost $ $
Variable manufacturing overhead per machinehour $
Variable manufacturing overhead per direct laborhour $
During the current month the company started and finished Job K The following data were recorded for this job:
Job K: Machining Customizing
Machinehours
Direct laborhours
Required:
Calculate the total amount of overhead applied to Job K in both departments.
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