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Madole Corporation has two production departments, Forming and Customizing. The company uses a job - order costing system and computes a predetermined overhead rate in
Madole Corporation has two production departments, Forming and Customizing. The company uses a joborder costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machinehours and the Customizing Department's predetermined overhead rate is based on direct laborhours. At the beginning of the current year, the company had made the following estimates:FormingCustomizingMachinehoursDirect laborhoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machinehourVariable manufacturing overhead per direct laborhourDuring the current month the company started and finished Job K The following data were recorded for this job:Job K:FormingCustomizingMachinehoursDirect laborhoursa Calculate the estimated total manufacturing overhead for the Forming Department.b Calculate the predetermined overhead rate for the Customizing Department.c Calculate the total overhead applied to Job K in both departments.
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