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Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each
Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes 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 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 Milling Customizing 17,000 1,000 $ 112,200 $ 1.70 12,000 9,000 $ 81,000 $ 4.30 During the current month the company started and finished Job T898. The following data were recorded for this job: Job T898: Machine-hours Direct labor-hours Milling Customizing 80 20 30 50 The amount of overhead applied in the Customizing Department to Job T898 is closest to: Note: Round your intermediate calculations to 2 decimal places.
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