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Save & Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate
Save & 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 Customizing 17,200 6,000 $101,480 $ 1.00 During the current month the company started and finished Job T138. The following data were recorded for this job 14,200 7,100 $59,640 $ 3.50 Job 1138: Machine-hours Direct labor-hours Casting Customizing 60 50 12 The amount of overhead applied in the Customizing Department to Job T138 is closest to (Round your intermediate calculations to 2 decimal places)
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