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help Gara Corporation has two production departments Casting and Customizing. The company uses a job order costing system and computes a predetermined overhead rate in
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Gara 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 costiment. The Casting Departments predetermined overtred rate is based on machine hours and the Customing Department's predetermined overhead tate based on direct bor hon. At the beginning of the current year, the company had made the following estimates Casting Customizing Machine-hours 15,000 21,000 Direct labor hours 11.900 10,000 Total fixed sanufacturing overhead cost $46,500 530,000 Variable manufacturing overhead per machine-hour $ 1.40 Variable manufacturing over head per direct labor hour 5.4.10 The estimated to al manufacturing overed for the Customizing Department is closest to MC O S1000 170.000 330DD Step by Step Solution
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