Asked by Yassine Wydadi on Jun 03, 2024

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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:
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.) During the current month the company started and finished Job K369. The following data were recorded for this job:
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.) 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.
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Zybrea KnightJun 03, 2024
Final Answer :
Machining Department:Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)= ${{[a(3)]:#,###}} + (${{[a(4)]:#,###.00}} per machine-hour × {{[a(1)]:#,###}} machine-hours)= ${{[a(3)]:#,###}} + ${{[a(13)]:#,###}} = ${{[a(14)]:#,###}}Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = ${{[a(14)]:#,###}} ÷ {{[a(1)]:#,###}} machine-hours = ${{[a(15)]:#,###.00}} per machine-hourOverhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = ${{[a(15)]:#,###.00}} per machine-hour × {{[a(9)]:#,###}} machine-hours = ${{[a(17)]:#,###}}Customizing Department:Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)= ${{[a(7)]:#,###}} + (${{[a(8)]:#,###.00}} per direct labor-hour × {{[a(6)]:#,###}} direct labor-hours)= ${{[a(7)]:#,###}} + ${{[a(18)]:#,###}} = ${{[a(19)]:#,###}}Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = ${{[a(19)]:#,###}} ÷ {{[a(6)]:#,###}} direct labor-hours = ${{[a(20)]:#,###.00}} per direct labor-hourOverhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = ${{[a(20)]:#,###.00}} per direct labor-hour × {{[a(12)]:#,###}} direct labor-hours = ${{[a(21)]:#,###}}Overhead applied to Job K369
Machining Department:Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)= ${{[a(3)]:#,###}} + (${{[a(4)]:#,###.00}} per machine-hour × {{[a(1)]:#,###}} machine-hours)= ${{[a(3)]:#,###}} + ${{[a(13)]:#,###}} = ${{[a(14)]:#,###}}Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = ${{[a(14)]:#,###}} ÷ {{[a(1)]:#,###}} machine-hours = ${{[a(15)]:#,###.00}} per machine-hourOverhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = ${{[a(15)]:#,###.00}} per machine-hour × {{[a(9)]:#,###}} machine-hours = ${{[a(17)]:#,###}}Customizing Department:Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)= ${{[a(7)]:#,###}} + (${{[a(8)]:#,###.00}} per direct labor-hour × {{[a(6)]:#,###}} direct labor-hours)= ${{[a(7)]:#,###}} + ${{[a(18)]:#,###}} = ${{[a(19)]:#,###}}Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = ${{[a(19)]:#,###}} ÷ {{[a(6)]:#,###}} direct labor-hours = ${{[a(20)]:#,###.00}} per direct labor-hourOverhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = ${{[a(20)]:#,###.00}} per direct labor-hour × {{[a(12)]:#,###}} direct labor-hours = ${{[a(21)]:#,###}}Overhead applied to Job K369