Question 1 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 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: Machining Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job K369. The following data were recorded for this job: Machining Customizing Job K369: Machine-hours Direct labor-hours Required: Calculate the following: Predetermined OH rate for Machining (round to 2 decimal places)$ Predetermined OH rate for Customizing (round to 2 decimal places)$ Total Amount of OH applied to job K369 through both departments (do not include commas)$ Question 2 Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw materials Work in process Finished Goods Beginning Balance $ $ $ Ending Balance $ $ $ The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work XXX machine-hours and incur $XXX in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $. Raw materials were requisitioned for use in production, $ ($ direct and $ indirect). The following employee costs were incurred: direct labor, $; indirect labor, $; and administrative salaries, $. Selling costs, $. Factory utility costs, $. Depreciation for the year was $ of which $ is related to factory operations and $ is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was machine- hours. Sales for the year totaled $. Required: Do not enter any commas (except for the pre-determined OH rate) and round to the nearest dollar Based on the data presented above, complete the following Table Pre-Determined OH Rate (round to 2 decimal places) Direct Materials used in Production Direct Labor Total Manufacturing Costs Cost of Goods Manufactured Adjusted Cost of Goods Sold Total Selling and Admin Exp Operating Income $ $ $ $ $ $ $ $ Question 1 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 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: Machining Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job K369. The following data were recorded for this job: Machining Customizing Job K369: Machine-hours Direct labor-hours Required: Calculate the following: Predetermined OH rate for Machining (round to 2 decimal places)$ Predetermined OH rate for Customizing (round to 2 decimal places)$ Total Amount of OH applied to job K369 through both departments (do not include commas)$ Question 2 Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw materials Work in process Finished Goods Beginning Balance $ $ $ Ending Balance $ $ $ The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work XXX machine-hours and incur $XXX in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $. Raw materials were requisitioned for use in production, $ ($ direct and $ indirect). The following employee costs were incurred: direct labor, $; indirect labor, $; and administrative salaries, $. Selling costs, $. Factory utility costs, $. Depreciation for the year was $ of which $ is related to factory operations and $ is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was machine- hours. Sales for the year totaled $. Required: Do not enter any commas (except for the pre-determined OH rate) and round to the nearest dollar Based on the data presented above, complete the following Table Pre-Determined OH Rate (round to 2 decimal places) Direct Materials used in Production Direct Labor Total Manufacturing Costs Cost of Goods Manufactured Adjusted Cost of Goods Sold Total Selling and Admin Exp Operating Income $ $ $ $ $ $ $ $
