Reference no: EM132734844

Problem - XYZ Company has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate (POHR) in each department. The Machining Department's POHR is based on machine-hours (Mhrs) and the Customizing Department's POHR is based on direct labor-hours (DLH). At the beginning of the current year, the company estimated the following yearly Mhrs and DLH to be used in each department: 20,000 Mhrs and 15,000 DLH in the Marching Department; 10,000 Mhrs and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department: OMR150,000 in the Machining Department and OMR100,000 in the Customizing Department. During the year, Job XY incurred the following number of hours in each department: 46 Mhrs and 30 DLH in the Machining Department; and 80 Mhrs and 50 DLH in the Customizing Department. What is the total amount of manufacturing overhead that should be applied to Job XY during the year?