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kroeker Corporation has two production departments, Miling and Customizing. The company uses a job-order costing system and computers a predetermined overhead rate in each production
kroeker Corporation has two production departments, Miling and Customizing. The company uses a job-order costing system and computers a predetermined overhead rate in each production department. The Milling 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 mac the following estimates Milling Customizing Machine-hours 17,000 12,000 Direct labor-hours 1,000 9,000 Total fixed manufacturing overhead cost $112,200 $81,000 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 4.30 During the current month the company started and finished Job T898. The following data were recorded for this job: Job T898: Milling Customizing Machine-hours 80 30 Direct labor-hours 20 50 The amount of overhead applied in the Customizing Department to Job T898 is closest to: (Round your intermediate calculations to 2 decimal plu
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