Asked by Yassine Wydadi on Jun 03, 2024
Verified
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:
During the current month the company started and finished Job K369. The following data were recorded for this job:
Required:Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
Predetermined Overhead Rate
Predetermined overhead rate is calculated by dividing the estimated manufacturing overhead costs by an allocation base, used to apply overhead costs to products.
Machine-Hours
A measure of production time based on the number of hours a machine is operated.
Direct Labor-Hours
Summation of hours by employees directly contributing to manufacturing efforts.
- Determine the allotment of manufacturing overhead to jobs, referencing machine hours and labor hours.
Verified Answer
Learning Objectives
- Determine the allotment of manufacturing overhead to jobs, referencing machine hours and labor hours.
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