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(10 points) Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate
(10 points) Mahon Corporation has two production departments, 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 predetermined overhead rate is based on machine-hours and the Customizing 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting Customizing 15,400 12,400 5,000 $93,940 6,200 $58,900 $ 3.00 $ 5.90 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Machine-hours Direct labor-hours Direct Materials Direct Labor Calculate the total manufacturing cost of Job T138. Job T138: Direct Materials Direct Labor Applied MOH Total Casting Customizing 90 40 12 70 $4,215 $855 $300 $200 Casting Customizing Total
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