Answered step by step
Verified Expert Solution
Link Copied!

Question

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 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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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 19,200 17,200
Direct labor-hours 7,600 8,600
Total fixed manufacturing overhead cost $ 117,120 $ 86,000
Variable manufacturing overhead per machine-hour $ 1.80
Variable manufacturing overhead per direct labor-hour $ 3.60

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 70 40
Direct labor-hours 14 60

The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

3 What are the stages of Kotter and Cohens model of change?

Answered: 1 week ago

Question

4 What is organisation development?

Answered: 1 week ago

Question

5 What activities are employed in OD processes?

Answered: 1 week ago