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: 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 $120,400 $ 2,50 15,000 1,000 $60, 000 $ 5.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job K369 Machine-hours Direct labor-hours Machining 70 Customizing 20 80 40 Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round Intermedlate calculations.)
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: 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 $120,400 $ 2,50 15,000 1,000 $60, 000 $ 5.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job K369 Machine-hours Direct labor-hours Machining 70 Customizing 20 80 40 Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round Intermedlate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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