Leafon Corporation has two production departments, Casting and Customizing. The company uses a job costing system and
Question:
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 ₱____________.
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer