Question
Mahon 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
Mahon 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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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 20,600 16,600 Direct labor-hours 7,100 8,300 Total fixed manufacturing overhead cost $ 140,080 $ 83,000 Variable manufacturing overhead per machine-hour $ 2.40 Variable manufacturing overhead per direct labor-hour $ 4.80 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Casting Customizing Machine-hours 80 30 Direct labor-hours 9 60 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-06-22, 2017-08-01 Multiple Choice $588.00 $122,840.00 $888.00 $294.00
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