Rocher Corporation Has Two Production Departments, Casting and Finishing

question 304

Essay

Rocher 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 A394. The following data were recorded for this job:
Required:a. Calculate the estimated total manufacturing overhead for the Casting Department.b. Calculate the predetermined overhead rate for the Casting Department.c. Calculate the amount of overhead applied in the Casting Department to Job A394.

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