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Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a joborder costing system and computes a predetermined overhead rate in each production
Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a joborder 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 Customizing Machinehours 19,000 22,000 Direct laborhours 19,000 2,000 . . s $ 6,200 Total fixed manufacturing overhead cost 50,900 Variable manufacturing overhead per machine-hour S 1.60 Variable manufacturing overhead per direct laborhour $ 4.40 During the current month the company started and finished Job T272. The following data were recorded for this job: Job 1'2 3'2 : Machining Cue tcmizing Machine -hours 4 0 1 0 D i rect laborhours 3 0 6 0 The estimated total manufacturing overhead for the Machining Department is closest to:
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