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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: Machining Customizing Machine-hours 12,000 17,000 Direct labor-hours 4,000 5,000 Total fixed manufacturing overhead cost $ 58, 800 $ 76,500 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 K3691 Machine-hours Direct labor-hours Machining 70 30 Customizing 10 50 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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