View the step-by-step solution to:

Question

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   20,000   16,000 Direct labor-hours   5,000   1,000 Total fixed manufacturing overhead cost $ 80,000 $ 73,600 Variable manufacturing overhead per machine-hour $ 2.00     Variable manufacturing overhead per direct labor-hour     $ 4.00

 

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 80   10 Direct labor-hours 30   70

 

Required:

Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)

Top Answer

The Total amount of Overhead applied to... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question