Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing...
60.1K
Verified Solution
Link Copied!
Question
Accounting
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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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
$
62,400
$
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
Required:
Calculate the total amount of overhead applied to Job K369 in both departments.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
