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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 job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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:FormingCustomizingMachine-hours1900012000Direct labor-hours40008000Total fixed manufacturing overhead cost11970067200Variable manufacturing overhead per machine-hour2Variable manufacturing overhead per direct labor-hour4.2During the current month the company started and finished Job K973. The following data were recorded for this job:Job K973:FormingCustomizingMachine-hours5020Direct labor-hours2050a. 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 K973 in both departments.
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