Question
; 12. Barbeau Corporation has two production departments, Milling and Customizing. Thecompany uses a job-order costing system and computes a predetermined overheadrate in each production
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12. Barbeau Corporation has two production departments, Milling and Customizing. Thecompany uses a job-order costing system and computes a predetermined overheadrate in each production department. The Milling Departments predetermined overheadrate is based on machine-hours and the Customizing Departments predeterminedoverhead rate is based on direct labor-hours. At the beginning of the current year, thecompany had made the following estimates:MillingCustomizinMachine-hours17,00013,000Direct labor-hours2,0005,000Total fixed manufacturing overhead cost$119,000$42,000Variable manufacturing overhead per machine-hour$1.60Variable manufacturing overhead per directlabor-hour$4.30During the current month the company started and finished Job A492. The followingdata were recorded for this job:Job A492:MillingCustomizingMachine-hours9020Direct labor-hours2050The estimated total manufacturing overhead for the Customizing Department is closest to
$63,500
$21,500
$42,000
$33.853
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