KAM Company uses a job order costing system at its local plant. The plant has a machining department and a finishing department. The company uses machine hours to allocate machining department overhead costs to jobs and uses direct labor cost to allocate finishing department overhead costs to jobs. Cost and practical capacity estimates for the current year are as follows: 

Required 

(a) Determine the cost driver rate for each department. 

(b) Cost records for job 103 show the following:

Determine the total cost charged to job 103.  

Transcribed Image Text:

Manufacturing overhead costs. Machine hours Direct labor hours. Direct labor cost. MACHINING DEPARTMENT $450,000 14,000 3,500 $ 63,000 FINISHING DEPARTMENT $320,000 1,400 15,400 $323,400