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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 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 Casting 20,400 7,100 $ 157,080 $ 1.50 Customizing 16,400 8,200 $ 68,880 $ 3.00 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Machine-hours Direct labor-hours Casting 60 10 Customizing 50 90 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice $720.00 O O $93,480.00 $1.026.00 $360.00 Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials Direct labor-hours Direct labor wage rate Machine-hours $ 2,463 79 labor-hours $ 16 per labor-hour 137 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $17 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: Multiple Choice o $3,380 $3727 O O $6.056 O O $6,896 Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 30,700 $ 337,700 $ 4 Recently, Job T687 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 20 $ 575 $ 1,150 The amount of overhead applied to Job T687 is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice O $300.00 O $337.70 O O $381.00 O $60.00 Garza 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting 23,000 7,000 $ 82,800 $ 1.40 Customizing 15,000 7,000 $ 30,100 $ 4.70 The estimated total manufacturing overhead for the Customizing Department is closest to: Multiple Choice O $115.700 d $32.900 O $63.000 $30.100
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