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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 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 predetermined overhead rate for the Machining Department is closest to

image text in transcribed

$22.93 per machine-hour $6.50 per machine-hour O $2.10 perc $2.10 per machine-hour $8.60 per machine-hour

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