(Solved) Rocher Corporation has two production departments, Casting and Finishing. The company uses a ...

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

	Casting	Finishing
Machine-hours	17,000	13,000
Direct labor-hours	4,000	6,000
Total fixed manufacturing overhead cost	$124,100	$52,200
Variable manufacturing overhead per machine-hour	$ 2.30
Variable manufacturing overhead per direct labor-hour		$ 4.00

During the current month the company started and finished Job A394. The following data were recorded for this job:

Job A394	Casting	Finishing
Machine-hours	80	20
Direct labor-hours	10	40

Required:

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

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

c. Calculate the amount of overhead applied in the Casting Department to Job A394.

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Rocher Corporation has two production departments, Casting and Finishing. The company uses a ...

Introduction to Managerial Accounting: Brewer Edition: 9e

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