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Eisentrout 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
Eisentrout 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 compony 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 Machining Customizing 11,000 16,000 6,000 $ $ 56,400 2,000 104,000 $2.10 $3.30 During the current month the company started and finished Job 1272 The following data were recorded for this job Job 1272: Machine-hours Direct labor-hours Machining Customizing 60 10 60 The amount of overhead applied in the Machining Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)
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