Gercak Corporation has two production departments, Forming and Assembly. 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 Assembly 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 X560. The following data were recorded for this job:
Required:
a. Calculate the estimated total manufacturing overhead for the Assembly Department.
b. Calculate the predetermined overhead rate for the Forming Department.
c. Calculate the total amount of overhead applied to Job X560 in both departments.

Question

Gercak Corporation has two production departments, Forming and Assembly. 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 Assembly 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 X560. The following data were recorded for this job:
  Required:
a. Calculate the estimated total manufacturing overhead for the Assembly Department.
b. Calculate the predetermined overhead rate for the Forming Department.
c. Calculate the total amount of overhead applied to Job X560 in both departments.

Quizplus · Accepted Answer

The Answer of Gercak Corporation has two production departments, Forming and Assembly. 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 Assembly 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 X560. The following data were recorded for this job:
  Required:
a. Calculate the estimated total manufacturing overhead for the Assembly Department.
b. Calculate the predetermined overhead rate for the Forming Department.
c. Calculate the total amount of overhead applied to Job X560 in both departments.

Gercak Corporation Has Two Production Departments, Forming and Assembly