Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 options: Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate
Question 2 options: 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 21,000 14,000 Direct labor-hours 4000 2000 Total fixed manufacturing overhead cost $ 100,800 $ 64,400 Variable manufacturing overhead per machine-hour $ 1.00 Variable manufacturing overhead per direct labor- hour $ 2.00 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 90 10 Direct labor-hours 10 60 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) $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started