Leafon Corporation has two production departments, Casting and Customizing. The company uses a job costing system and calculates a predetermined overhead rate for each production department. The foundry department's default overhead rate is based on machine hours, and the customization department's default overhead rate is based on direct labor hours. At the beginning of this year, the company had made the following estimates:

	Foundry	personalization
Machine hours (MH)	20,000	16,400
Direct labor hours (DLH)	7,100	9,000
total fixed MOH	$ 175,000	$ 165,500
Variable MOH per MH	$ 2.50
MOH variable per DLH		$ 9.00

During the current month, the company started and completed Job Leaf-118 . For this work the following data was recorded:

Worksheet-118	Foundry	personalization
machine hours	500	700
Direct labor hours	100	450

The TOTAL AMOUNT of overhead applied to worksheet-118 is closest to ₱____________.

The amount of overhead applied in the FOUNDRY DEPARTMENT to worksheet-118 is closest to ₱____________.

Answer rating: 100% (QA)

Predetermined Overhead Rate for Foundry Department based on machine hours Predetermined Overhead Rat... View the full answer