q1

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 59,000 actual direct labor-hours and incurred $472,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 61,200 direct labor-hours during the year and incur $410,040 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

Multiple Choice

• overapplied by $76,700

• underapplied by $76,700

• overapplied by $61,960

• underapplied by $61,960

q2

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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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		29,000		16,000
Direct labor-hours		4,000		4,000
Total fixed manufacturing overhead cost	$	118,900	$	76,800
Variable manufacturing overhead per machine-hour	$	1.50
Variable manufacturing overhead per direct labor-hour			$	3.00

During the current month the company started and finished Job K369. The following data were recorded for this job:

Job K369:	Machining		Customizing
Machine-hours	60		20
Direct labor-hours	30		90

Required:

Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)