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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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 | 13,000 | 11,000 | ||
Direct labor-hours | 4,000 | 1,000 | ||
Total fixed manufacturing overhead cost | $ | 54,600 | $ | 46,200 |
Variable manufacturing overhead per machine-hour | $ | 2.50 | ||
Variable manufacturing overhead per direct labor-hour | $ | 5.00 | ||
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 | 90 | 10 | |
Direct labor-hours | 20 | 80 | |
Required:
Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
Overhead applied?
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