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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. 13,000. 10,000
Direct labor-hours 3,000. 4,000
Total fixed
manufacturing
overhead cost $62,4000. $44,000
Variable
Manufacturing
Overhead per
Machine-hour. $2.50
Variable
Manufacturing
Overhead per
Direct labor-hour. $5.00
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. 20
Direct labor-hours. 10. 90
Calculate the total overhead applied to Job K369 in both departments.
Sagot :
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