Kalp Corporation has two production departments, Machining and Finishing. The co
ID: 2594643 • Letter: K
Question
Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department s predetermined overhead rate is based on direct labor-hours. At the beginning of the current yean the company had made the following estimates: MachiningFinishing Machine-hours Direct labor-hours Total fixed nanufacturing overhead cost variable manufacturine overhead per nachine -hour veriable nanufacturing overhead per direct labor-hour 19,eee 2,eee S 136,80e S 1.88 12,988 8,eee $ 69,6e S3.20 During the current month the company started and finished Job K928. The following data were recorded for this job Job K928 Machining Finishing wachine-hours Direct labor-hours Direct materials birect labor cost 3e S 775 5 630 1e 50 $ 415 $1,e5e The estimated total manufacturing overhead for the Machining Department is closest to O $136,800 O $34.200 $171,000 $359,100 Moving to another question will save this re Question 4 of 50>Explanation / Answer
C.$171,000.
total manufacturing overhead = fixed manufacturing overhead + variable manufacturing overhead per machine hour * (number of machine hours)
=>$136,800 + $1.80 *(19,000)
=>$136,800 +34,200
=>$171,000.
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