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 19,000 2,000 $ 136,800 $ 1.80 Finishing Machine-hours 12,000 Direct labor-hours 8,000 $ 69,600 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 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 $ 775 $ 630 $ 415 $ 1,050 Direct materials Direct labor cost The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $136,800 $34,200
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 19,000 2,000 $ 136,800 $ 1.80 Finishing Machine-hours 12,000 Direct labor-hours 8,000 $ 69,600 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 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 $ 775 $ 630 $ 415 $ 1,050 Direct materials Direct labor cost The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $136,800 $34,200
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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