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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
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 Customizing 20,400 7,500 $ 130,560 $ 1.90 17,400 8,700 $91,350 During the current month the company started and finished Job T138. The following dato were recorded for this job Job 1138: Machine-hours Direct labor-hours Casting 100 8 Customizing 50 100 $ 3.70 The amount of overhead applied in the Customizing Department to Job 1138 is closest to: (Round your intermediate calculations to 2 decimal places.) Mutiple Choice $895.00 $121540.00
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