Question
Marciante Corporation has two production departments, Casting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Marciante Corporation has two production departments, Casting and Finishing. 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 Finishing 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 | Finishing | |
---|---|---|
Machine-hours | 17,000 | 10,000 |
Direct labor-hours | 2,000 | 5,000 |
Total fixed manufacturing overhead cost | $ 105,400 | $ 52,000 |
Variable manufacturing overhead per machine-hour | $ 1.70 | |
Variable manufacturing overhead per direct labor-hour | $ 3.90 |
The estimated total manufacturing overhead for the Finishing Department is closest to:
Multiple Choice
$71,500
$52,000
$34,794
$19,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started