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Caracas Corporation has two production departments, Plating and Laminating. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Caracas Corporation has two production departments, Plating and Laminating. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Plating Department's predetermined overhead rate is based on machine-hours and the Laminating 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: Plating Laminating Machine-hours 19,000 12,000 Direct labor-hours 4,000 8,000 Total fixed manufacturing overhead cost $119,700 $67,200 Variable manufacturing overhead per machine-hour $2.00 Variable manufacturing overhead per direct labor-hour $4.20 During the current month the company started and finished Job AA036. The following data were recorded for this job: Job AA036: Plating Laminating 50 20 Machine-hours Direct labor-hours 20 50 Required: a. Calculate the estimated total manufacturing overhead for the Plating Department. b. Calculate the predetermined overhead rate for the Laminating Department. c. Calculate the total overhead applied to Job AA036 in both departments
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