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Garza Corporation has two production departments, Casting and Customizing... Please find the estimated total manufacturing overhead for the customizing department! Garza Corporation has two production
Garza Corporation has two production departments, Casting and Customizing... Please find the estimated total manufacturing overhead for the customizing department!
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 Casting Customizing Machine-hours 23,000 21,000 Direct labor-hours 15,000 2,000 Total fixed manufacturing overhead cost $89, 700 $ 6,200 Variable manufacturing overhead per machine $ 1.50 Variable manufacturing overhead per direct labor-hour hour $ 4.10 The estimated total manufacturing overhead for the Customizing Department is closest to Multiple Choice $151,200 $8,200 $14,400 $6.200 Step by Step Solution
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