Marius Corporation Has Two Production Departments, Casting and Finishing

question 69

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:

Duration Matching

Duration matching is an investment strategy used to minimize the interest rate risk by matching the duration of assets and liabilities, ensuring changes affect both sides similarly.

Yield Curve

A graph showing the relationship between bond yields and their maturity dates, commonly used to predict economic changes.

Price Volatility

Refers to the degree of variation in the price of a financial instrument over time, indicating the risk or uncertainty of its value change.

Coupon Bond

A debt security that pays interest to the holder on a regular basis until its maturity, when the principal is also repaid.