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In July, one of the processing departments at Okamura Corporation had beginning work in process inventory...


In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $16,000 and endi
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $16,000 and ending we $21,000. During the month, the cost of units transferred out from the department was $151,000. In the department's cost reconciliatio to be accounted for under the weighted average method would be: O $37,000 $172,000 $135,000 $122,000 QUESTION 11 Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system ar overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hou Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company ha Casting Customizing Machine-hours 17,800 14,800 Dtrect labor-hours 6400 7400 Total fixed manufacturing overhead cost $106,800 $ 56,240 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 3.40 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138 Casting Customizing Machine-hours 90 40 Direct labor-hours 15 90 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calcu $576.00 | mot app!
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Answer #1

Customizing Department overhead cost = Fixed manufacturing overhead cost + ( Variable overhead cost per direct labor-hour * Total direct labor-hours in the department)

Customizing Department overhead cost = $56240 + ($3.40 per direct labor-hour * 7,400 direct labor-hours)

Customizing Department overhead cost = $56240 + $25160

Customizing Department overhead cost = $81400

Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total amount of the allocation base incurred = $81400 / 7,400 direct labor-hours = $11 per direct labor-hour

Overhead applied to a particular job = Predetermined overhead rate * Amount of the allocation base incurred by the job = $11 per direct labor-hour * 90 direct labor-hours = $990

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