Marius Corporation Has Two Production Departments, Casting and Finishing

question 65

Essay

Marius Corporation has two production departments, Casting and Finishing. 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 Finishing 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:
During the current month the company started and finished Job K895. The following data were recorded for this job:
Required:
a. Calculate the estimated total manufacturing overhead for the Finishing Department.
b. Calculate the predetermined overhead rate for the Finishing Department.
c. Calculate the amount of overhead applied in the Finishing Department to Job K895.

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Definitions:

Conditioned Association

The process by which two stimuli or events are linked together in the mind to produce a learned response.

Neutral

Not favoring any side in a dispute, contest, or situation; unbiased or impartial.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any need for prior learning.

Stimulus Discrimination

The ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.