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

Kalp Corporation has two production departments, Machining and Finishing. 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 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:

	Machining	Finishing
Machine-hours	19,000	12,000
Direct labor-hours	2,000	8,000
Total fixed manufacturing overhead cost	$ 136,800	$ 69,600
Variable manufacturing overhead per machine-hour	$ 1.80
Variable manufacturing overhead per direct labor-hour		$ 3.20

During the current month the company started and finished Job K928. The following data were recorded for this job:

Job K928:	Machining	Finishing
Machine-hours	90	10
Direct labor-hours	30	50
Direct materials	$ 775	$ 415
Direct labor cost	$ 630	$ 1,050

The amount of overhead applied in the Machining Department to Job K928 is closest to:

▸ $783.00

▸ $810.00

▸ $162.00

▸ $171,000.00

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

Kalp Corporation has two production departments, Machining and Finishing. The company uses a ...

Introduction to Managerial Accounting: Brewer Edition: 9e

Related Topics