Question

Bulla Corporation has two production departments, Machining and Customizing. 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 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 21,000 14,000 4,000 2,000 $100,800 $64,400 1.00 $ 2.00 During the current month the company started and finished Job K369. The following data were recorded for this job Job K369: Machine-hours Direct labor-hours Machining 90 10 Customizing 10 60 Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.) Overhead applied