Question

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 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 19,000 5,000 $83,600 12,000 2,000 $50,400 $ 3.00 $ 6.0 During the current month the company started and finished Job K369. The following data were recorded for this job Job K369: Machine-hours Direct labor-hours Machining Customizing 50 40 40 50 Required Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.) Overhead appli

Answer 1

The answer has been presented in the supporting sheet. Firstly overhead rate has been calculated for both the department's and then total overhead has been calculated for job K36. For detailed answer refer the supporting sheet.