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 production
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:
MachiningCustomizingMachine-hours13,00011,000Direct labor-hours4,0001,000Total fixed manufacturing overhead cost$54,600$46,200Variable manufacturing overhead per machine-hour$2.50Variable manufacturing overhead per direct labor-hour$5.00
During the current month the company started and finished Job K369. The following data were recorded for this job:
Job K369:MachiningCustomizingMachine-hours9010Direct labor-hours2080
Required:
Calculate the total amount of overhead applied to Job K369 in both departments.(Do not round intermediate calculations.)
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