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What is the amount of overhead applied in the Customizing Department to Job 1138? Mahon Corporation has two production departments, Casting and Customizing. The company
What is the amount of overhead applied in the Customizing Department to Job 1138?
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 Total fixed manufacturing overhead cost Direct labor-hours Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting Customizing 16,400 5,600 $ 106,600 13,400 6,700 $ 58,290 $ 3.00 $ 5.90 During the current month the company started and finished Job T138. The following data were recorded for this job Job T138: Machine-hours Direct labor-hours Casting 60 Customizing 30 13 80
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