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G Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production
G Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departments predetermined overhead rate is based on machine-hours and the Assembly Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Assembly Machine-hours 16,000 11,000 Direct labor-hours 2,000 7,000 Total fixed manufacturing overhead cost $ 100,800 $ 76,300 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 3.10 During the current month the company started and finished Job X560. The following data were recorded for this job: Job X560 Forming Assembly Machine-hours 50 30 Direct labor-hours 30 40 Required: a. Calculate the estimated total manufacturing overhead for the Assembly Department. b. Calculate the predetermined overhead rate for the Forming Department. c. Calculate the total amount of overhead applied to Job X560 in both departments
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