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 |
| 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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