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 20,600 7,100 $140,080 $ 2.40 Customizing 16,600 8,300 $83,000 $ 4.80 During the current month the company started and finished Job T138. The following data were recorded for this job: Casting Customizing Job T138: Machine-hours Direct labor-hours 9 60 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 $588.00 $122,840.00 0 $888.00 O $294.00 $294.00 Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead Actual machine-hours for the year 33,100 $ 5.72 per machine-hour $770,568 30,800 The predetermined overhead rate for the recently completed year was closest to: Multiple Choice $5.72 per machine-hour $28.60 per machine-hour $29.00 per machine-hour $23.28 per machine-hour The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,045. A total of 42 direct labor-hours and 255 machine-hours were worked on the job. The direct labor wage rate is $19 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $21 per machine- hour. The total cost for the job on its job cost sheet would be: ) $5,154 $10,343 $5,573 $8,198 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 31,000 $310,000 $ 4.00 Recently, Job T687 was completed with the following characteristics: 10 Number of units in the job Total machine-hours Direct materials Direct labor cost 30 $ 730 $1,460 The total job cost for Job T687 is closest to: Multiple Choice $1,880 0 $1,50 $1,150 o $2,90 $2,190 O $2,610 $2,610
