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:
| Machining | Customizing |
| |||
Machine-hours |
| 24,000 |
| 15,000 | ||
Direct labor-hours |
| 1000 |
| 2000 | ||
Total fixed manufacturing overhead cost | $ | 108,000 | $ | 70,500 | ||
Variable manufacturing overhead per machine-hour | $ | 1.50 |
|
| ||
Variable manufacturing overhead per direct labor-hour |
|
| $ | 3.00 | ||
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 | 60 |
| 30 |
Direct labor-hours | 40 |
| 60 |
Required:
Calculate the following: |
|
Predetermined OH rate for Machining (round to 2 decimal places) | $ |
Predetermined OH rate for Customizing (round to 2 decimal places) | $ |
Total Amount of OH applied to job K369 through both departments (do not include commas) | $ |
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