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Title: Bulla Corporation has two production departments, Machining and Customizing. The company uses a ...
Post by: djchewinggum on Mar 26, 2023

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:

MachiningCustomizing
Machine-hours19,00013,000
Direct labor-hours2,0009,000
Total fixed manufacturing overhead cost$98,800$84,600
Variable manufacturing overhead per machine-hour$ 2.10
Variable manufacturing overhead per direct labor-hour$ 3.60

During the current month the company started and finished Job K369. The following data were recorded for this job:

Job K369:MachiningCustomizing
Machine-hours9010
Direct labor-hours2050

Required:

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



Title: Re: Bulla Corporation has two production departments, Machining and Customizing. The company uses a ...
Post by: kingqadri on Mar 26, 2023
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