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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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining 16,000 3,000 $ 70,400 $ 3.00 Customizing 17,000 4,000 $ 85,000 $ 6.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job 3691 Machine-hours Direct labor-hours Machining 70 40 Customining 20 80 Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.) Overhead applied $ 2,698
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