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:
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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:
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Job K369:
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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.)