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 Department's predetermined overhead rate is based on machine-hours and the Finishing 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:  CastingFinishingMachine-hours 17,000 10,000Direct labor-hours 2,000 5,000Total fixed manufacturing overhead cost$105,400$52,000Variable manufacturing overhead per machine-hour$1.70  Variable manufacturing overhead per direct labor-hour  $3.90The estimated total manufacturing overhead for the Finishing Department is closest to:

A. $71,500
B. $34,794
C. $52,000
D. $19,500


Answer: A

Business

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