Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Westilm Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each
Westilm 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour Machining Customizing 28,000 1,000 15,000 1,000 $ 120,400 $ 60,000 $ 2.50 $5.00 During the current month the company started and finished Job L382. The following data were recorded for this job: Job L382: Machine-hours Direct labor-hours Machining 70 Customizing 20 40 80 Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
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