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Question - Leafon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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:
Customizing
Casting
Machine-hours (MH)
20,000
17,500
Direct labor-hours (DLH)
7,000
9,000
Total Fixed MOH
175,000
165,500
Variable MOH per MH
2.50
Variable MOH per DLH
9.00
During the current month, the company started and finished Job Leaf-118. The following data were recorded for this job:
Job Leaf-118
Machine-hours
500
700
Direct labor-hours
100
450
Required -
1. Find the TOTAL AMOUNT of Overhead Applied to Job Leaf-118?
2. Find the amount of overhead applied in the CASTING DEPARTMENT to Job Leaf-118?
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