Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 achining Customizing 15,000 2000 $ 108,000 $ 70,500 24,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 1000 1.50 3.00 During the current month the company started and finished Job K369. The following data were recorded for this job Job K369 Machine-hours Direct labor-hours Machining Customizing 60 30 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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started