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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:

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During the current month the company started and finished Job K369. The following data were recorded for this job: JobK369:Machine-hoursDirectlabor-hoursMachining9020Customizing1080 Calculate the total amount of overhead applied to Job K369 in botr Machine-hoursDirectlabor-hoursTotalfixedmanufacturingoverheadcostVariablemanufacturingoverheadpermachine-hourVariablemanufacturingoverheadperdirectlabor-hourMachining13,0004,000$54,600$2.50Customizing11,0001,000$46,200$5.00

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