Calculate the total amount of overhead applied to job

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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:

Machining

Customizing

Machine-hours

40

40

Direct labor-hours

20

70

Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)

Reference no: EM131623820

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