(Solved) Gercak Corporation has two production departments, Forming and Assembly. The company uses a ...

Gercak Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Assembly 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:

	Forming	Assembly
Machine-hours	16,000	11,000
Direct labor-hours	2,000	7,000
Total fixed manufacturing overhead cost	$100,800	$76,300
Variable manufacturing overhead per machine-hour	$ 1.70
Variable manufacturing overhead per direct labor-hour		$ 3.10

During the current month the company started and finished Job X560. The following data were recorded for this job:

Job X560	Forming	Assembly
Machine-hours	50	30
Direct labor-hours	30	40

Required:

a. Calculate the estimated total manufacturing overhead for the Assembly Department.

b. Calculate the predetermined overhead rate for the Forming Department.

c. Calculate the total amount of overhead applied to Job X560 in both departments.

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Gercak Corporation has two production departments, Forming and Assembly. The company uses a ...

Introduction to Managerial Accounting: Brewer Edition: 9e

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