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1 Mahon Corporation has two production deparments Casting and Customizing. The company uses a Job-order costing system and computes a predetermined overhead rate in each
1 Mahon Corporation has two production deparments Casting and Customizing. The company uses a Job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's preciatermined overhead rate is based on machine-hours and the Customizing Department's predetermined werhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates Casting Customizing Machine-hours 16,600 Direct labor-hours 7,189 8,308 Total fixed manufacturing overhead cost $140,00 $83,000 Variable manufacturing averhead per machine-hour $ 2.42 Variable manufacturing averhead per direct labor-hour $ 4.RO 20,500 Sun During the current month the curgery started and finished Job T138. The following data were recorded for this job: Job T138: Casting Customizing Machine-hours 32 Dirert labor-hours 60 The amount of overlead applied in the Customizing Department to Job T138 is closest to (Round your intermediate calculations to 2 decimal places.) Mutiple Choice $S100 $122 49.00 $888.00 $294.00
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