Kalp Corporation has two production departments, Machining and Finishing. 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 Finishing 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 Finishing Machine-hours 19,000 12,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost $ 136,800 $ 69,600 Variable manufacturing overhead per machine-hour $ 1.80 Variable manufacturing overhead per direct labor-hour $ 3.20 During the current month the company started and finished Job K928. The following data were recorded for this job: Job K928: Machining Finishing Machine-hours 90 10 Direct labor-hours 30 50 Direct materials $ 775 $ 415 Direct labor cost $ 630 $ 1,050The total amount of overhead applied in both departments to Job K928 is closest to: $595 $2,000 $1,405 $810
Kalp Corporation has two production departments, Machining and Finishing. 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 Finishing 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 Finishing Machine-hours 19,000 12,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost $ 136,800 $ 69,600 Variable manufacturing overhead per machine-hour $ 1.80 Variable manufacturing overhead per direct labor-hour $ 3.20 During the current month the company started and finished Job K928. The following data were recorded for this job: Job K928: Machining Finishing Machine-hours 90 10 Direct labor-hours 30 50 Direct materials $ 775 $ 415 Direct labor cost $ 630 $ 1,050The total amount of overhead applied in both departments to Job K928 is closest to: $595 $2,000 $1,405 $810
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15P: The following information, taken from the books of Herman Brothers Manufacturing represents the...
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Kalp Corporation has two production departments, Machining and Finishing. 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 Finishing 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 K928. The following data were recorded for this job:
The total amount of overhead applied in both departments to Job K928 is closest to:
Machining | Finishing | |||
Machine-hours | 19,000 | 12,000 | ||
Direct labor-hours | 2,000 | 8,000 | ||
Total fixed |
$ | 136,800 | $ | 69,600 |
Variable manufacturing overhead per machine-hour | $ | 1.80 | ||
Variable manufacturing overhead per direct labor-hour | $ | 3.20 |
During the current month the company started and finished Job K928. The following data were recorded for this job:
Job K928: | Machining | Finishing | ||
Machine-hours | 90 | 10 | ||
Direct labor-hours | 30 | 50 | ||
Direct materials | $ | 775 | $ | 415 |
Direct labor cost | $ | 630 | $ | 1,050 |
$595
|
||
$2,000
|
||
$1,405
|
||
$810
|
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