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: MachiningFinishingMachine-hours 19,000 12,000Direct labor-hours 2,000 8,000Total fixed manufacturing overhead cost$136,800$69,600Variable 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:MachiningFinishingMachine-hours 90 10Direct labor-hours 30 50Direct materials$775$415Direct 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

Pre-Determined Overhead Rate: Manufacturing overheads are those costs that are incurred indirectly…

Answered: Kalp Corporation has two production…

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...

See similar textbooks

Related questions

Concept explainers

Question

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	$	1,050

The total amount of overhead applied in both departments to Job K928 is closest to:

		$595
		$2,000
		$1,405
		$810

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions