Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining 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: Machining 17,000 3,000 $102,000 $ 1.70 Customizing 15,000 6,000 $61,200 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour $ 4.10 During the current month the company started and finished Job T268. The following data were recorded for this job: Customizing 30 Job T268: Machine-hours Direct labor-hours Direct materials Direct labor cost Machining 80 30 $ 720 $ 900 50 $ 380 $1,500 The total amount of overhead applied in both departments to Job T268 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,331 $616 $715 $2,046
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started