Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

XYZ Company has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate (POHR) in each

image text in transcribed
XYZ Company has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate (POHR) in each department. The Machining Department's POHR is based on machine-hours (Mhrs) and the Customizing Department's POHR is based on direct labor-hours (DLH). At the beginning of the current year, the company estimated the following yearly Mhrs and DLH to be used in each department: 20,000 Mhrs and 15,000 DLH in the Marching Department; 10,000 Mhrs and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department OMR150,000 in the Machining Department and OMR100,000 in the Customizing Department. During the year, Job XY incurred the following number of hours in each department: 42 Mhrs and 30 DLH in the Machining Department, and 80 Mhrs and 50 DLH in the Customizing Department. What is the total amount of manufacturing overhead that should be applied to Job XY during the year? Select one: O a OMR575 b. None of the answers given O COMR485 d. OMR515 e. OMR545

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: John Hoggett, John Medlin, Lew Edwards, Matthew Tilling, Evelyn Hoggett Hogg

6th Edition

1742466354, 978-1742466354

More Books

Students explore these related Accounting questions