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Manon 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
Manon 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-bours 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 14,000 2,000 7,000 $124,200 $68,600 $ 1.90 $ 3.80 During the content month the company started and finished Job T138. The following data were recorded for this job: Job 7138: Machina-hours Direct Labor-hours Casting Customizing 70 30 10 60 The amount ol overhead applied in the Customizing Departmera to Job T138 is closest to: (Round places 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 OSSERO 0.0000 0 $8600 0 SZ800 o
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