Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Latest Certified Quality Auditor Certification Actual Questions

Authors: Pass For Life

1st Edition

108127705X, 978-1081277055

More Books

Students also viewed these Accounting questions