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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 Customizing 18,000 16,000 6,800 8,000 $99,000 $88,000 $ 2.70 $ 5.40 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 Customizing 90 60 13 70 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) 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 $2,491 74 labor-hours $ 20 per labor-hour 129 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $21 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: Multiple Choice $4,004 $3,971 To ooo $7,520 $7,520 $6,680 Kostelnik 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 total fixed manufacturing overhead cost of $555,000, variable manufacturing overhead of $2.10 per machine-hour, and 74,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: 20 Number of units in the job Total machine-hours Direct materials Direct labor cost 80 $ 870 $1,740 The unit product cost for Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 0 $168.90 0 $130.50 0 $32.62 $32.62 0 $42.23 $42.23
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