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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 Casting Customizing Machine-hours 17,800 13,800 Direct labor-hours 5,800 6,988 Total fixed manufacturing overhead cost $122,820 $75,990 Variable manufacturing overhead per machine-hour $ 2.50 Variable manufacturing overhead per direct labor-hour $ 4.90 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 40 Direct labor-hours The amount of overhead applied in the Customizing Department to Job T138 is closest to (Round your intermediate calculations to 2 decimal places.) 60 9 60 Mumple Choice $8.33.00 $109,710.00 Multiple Choice $832.00 $109, 71000 3954.00 $41500
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