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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining Customizing
Machine-hours 19,000 12,000
Direct labor-hours 3,000 4,000
Total fixed manufacturing overhead cost $76,000 $58,800
Variable manufacturing overhead per machine-hour $1.00
Variable manufacturing overhead per direct labor-hour $2
During the current month the company started and finished Job K369. The following data were recorded for this job:
Job K369:
Machining Customizing
Machine-hours 90 20
Direct labor-hours 40 70
Required:
Calculate the total amount of overhead applied to Job K369 in both departments.(Do not round intermediate calculations.)
Overhead Applied=
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