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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Madole Corporation Has Two Production Departments, Forming and Customizing