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Problem - 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:
Machining
Customizing
Machine-hours
15,000
14,000
Direct labor-hours
5,000
10,000
Total fixed manufacturing overhead cost
$61,500
$70,000
Variable manufacturing overhead per machine-hour
$1.50
Variable manufacturing overhead per direct labor-hour
$3.00
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:
Job K369:
40
20
70
Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)
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