Prayer 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 19,000 13,000Direct labor-hours 1,000 8,000Total fixed manufacturing overhead cost$110,200$68,800Variable manufacturing overhead per machine-hour$2.00 Variable manufacturing overhead per direct labor-hour $3.60 The estimated total manufacturing overhead for the Machining Department is closest to:
A. $38,000
B. $148,200
C. $299,725
D. $110,200
Answer: B
Business
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