Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 rato in each production

image text in transcribed
Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rato 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 20,400 16,400 Direct labor-hours 7,100 8.200 Total fixed manufacturing overhead cost $ 157,080 S 68,880 Variable manufacturing overhead per machine-hour $1.50 Variable manufacturing overhead per direct labor-hour $ 3.00 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 60 50 Direct labor-hours 10 90 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) $93,480.00 $1,026.00 $360.00 $720.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Frank Woods Business Accounting An Introduction To Financial Accounting

Authors: Alan Sangster, Lewis Gordon, Frank Wood

15th Edition

1292365439, 9781292365435

Students also viewed these Accounting questions

Question

Could you please check my project for plagiarism?

Answered: 1 week ago