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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 company had made the following estimates: Machining 16,000 2,000 $104,000 Customizing 11,000 6,000 $56,400 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 2.10 $ 3.30 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours Direct labor-hours Machining 60 10 Customizing 30 60 The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.) $76,200.00 $198.00 $762.00 $56400
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