Asked by JORDAN ESCOBAR on Jun 03, 2024
Verified
Madole Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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 K973. The following data were recorded for this job:
Required:a. Calculate the estimated total manufacturing overhead for the Forming Department.b. Calculate the predetermined overhead rate for the Customizing Department.c. Calculate the total overhead applied to Job K973 in both departments.
Machine-Hours
A measure of the amount of time machines are used in the production process, often related to the allocation of manufacturing overhead.
Direct Labor-Hours
The total hours of labor directly involved in the production of goods or services, used as a basis for assigning labor costs to products.
Forming
A manufacturing process that involves shaping and combining materials to create a product.
- Master the use and application of predetermined overhead rates in job-order costing systems.
- Compute the allocation of manufacturing overhead to jobs utilizing machine hours and labor hours as a basis.
Verified Answer
Learning Objectives
- Master the use and application of predetermined overhead rates in job-order costing systems.
- Compute the allocation of manufacturing overhead to jobs utilizing machine hours and labor hours as a basis.
Related questions
Mccaughan Corporation Bases Its Predetermined Overhead Rate on the Estimated ...
Hultquist Corporation Has Two Manufacturing Departments--Forming and Customizing ...
Vasilopoulos Corporation Has Two Production Departments, Casting and Assembly ...
Bulla Corporation Has Two Production Departments, Machining and Customizing ...
Bulla Corporation Has Two Production Departments, Machining and Customizing ...