Cost accounting. Corporation uses a predetermined overhead cale based on direct liber hours to applymanufacturing overhead to Jobs the Corporation has provided the following estimated costs forcosts for the next yearRoll Out factory buildingDepreciation on factory equipment soffiction supervisor’s salaryWatch estimates that 20 000 direct labor hours will bebe worked during the year . The predetermined overhead tate pet hour will be8 270 per direct labor howU . 53.00 per direct labor – low5100 per direct labor – hou4 3250 per direct labor – lowWalsh Corporation has two production departments , Machining and Customizing The company uses a job order costing system and compupredetermined overhead rate in eachfor department The Machining Department’s predetermined overhead rate is based on machine . hours and the Customizing Departingpredetermined overloadbased on direct labor – hours At the beginning of the current year , the company had made the following estimatesMachining Customizingstar fixed manufacturing overhead cost5 104 000 3 56100liable manufacturing overhead per machine hour S 2.10Variable manufacturing overhead per direct labor – houDuring the current month the company started and finished Job 1272 The following data were recorded for this JobsMachining CustomizingCHILLINIGNITIONThe amount of overhead applied in like customizing
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