Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining 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: MachiningCustomizingMachine-hours 16,000 11,000Direct labor-hours 2,000 6,000Total fixed manufacturing overhead cost$104,000$56,400Variable manufacturing overhead per machine-hour$2.10  Variable manufacturing overhead per direct labor-hour  $3.30During the current month the company started and finished Job T272. The following data

were recorded for this job:Job T272:MachiningCustomizingMachine-hours 60 30Direct labor-hours 10 60The amount of overhead applied in the Machining Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)

A. $516.00
B. $137,600.00
C. $126.00
D. $564.00


Answer: A

Business

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