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Elsentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each
Elsentrout 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour Machining 23,000 11,000 $133,400 Customizing 23,000 5,000 $15,500 $ 1.50 $ 4.20 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T2721 Machine-hours Direct labor-hours Machining 50 Customizing 10 50 60 The estimated total manufacturing overhead for the Machining Department is closest to:
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