Question
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Milling | Customizing | |||||
Machine-hours | 18,000 | 13,000 | ||||
Direct labor-hours | 4,000 | 7,000 | ||||
Total fixed manufacturing overhead cost | $ | 113,400 | $ | 64,400 | ||
Variable manufacturing overhead per machine-hour | $ | 1.60 | ||||
Variable manufacturing overhead per direct labor-hour | $ | 3.90 | ||||
During the current month the company started and finished Job A319. The following data were recorded for this job:
Job A319: | Milling | Customizing | ||||
Machine-hours | 60 | 10 | ||||
Direct labor-hours | 20 | 60 | ||||
Direct materials | $ | 655 | $ | 305 | ||
Direct labor cost | $ | 400 | $ | 1,200 | ||
The amount of overhead applied in the Milling Department to Job A319 is closest to:
142200.00
552.00
96.00
474.00
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