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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 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

16,000

17,000

Direct labor-hours

3000

4000

Total fixed manufacturing overhead cost

$

70,400

$

85,000

Variable manufacturing overhead per machine-hour

$

3.00

Variable manufacturing overhead per direct labor-hour

$

6.00

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

70

20

Direct labor-hours

40

80

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

$

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