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Leafon 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
Leafon 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 16,400 Machine-hours (MH) Direct labor-hours (DLH) 20,000 7,100 9,000 Total Fixed MOH P 175,000 P 165,500 Variable MOH per MH Variable MOH per DLH P 2.50 P 9.00 During the current month, the company started and finished Job Leaf-118. The following data were recorded for this job: Job Leaf-118 Casting Customizing Machine-hours 500 700 Direct labor-hours 100 450 The amount of overhead applied in the CASTING DEPARTMENT to Job Leaf-118 is closest to P Note: For interim calculations, use 5 decimal places; ROUND-UP final answer to a whole number
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