Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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:

Machining Customizing
Machine-hours 16,000 11,000
Direct labor-hours 2,000 6,000
Total fixed manufacturing overhead cost $104,000 $56,400
Variable manufacturing overhead per machine-hour $ 2.10
Variable manufacturing overhead per direct labor-hour $ 3.30

During the current month the company started and finished Job T272. The following data were recorded for this job:

Job T272: Machining Customizing
Machine-hours 60 30
Direct labor-hours 10 60

The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

2nd Edition

0471218529, 978-0471218524

More Books

Students also viewed these Accounting questions