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: CastingCustomizingMachine-hours 17,800? 14,800?Direct labor-hours 6400? 7400?Total fixed manufacturing overhead cost$106,800?$56,240?Variable manufacturing overhead per machine-hour$1.70? Variable manufacturing overhead per direct labor-hour $3.40?During the current month the company started and finished Job T138. The
following data were recorded for this job:Job T138:Casting CustomizingMachine-hours90? 40?Direct labor-hours15? 90?The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $288.00
B. $81,400.00
C. $990.00
D. $576.00
Answer: C
You might also like to view...
Each period's ending cash balance becomes the beginning cash balance for the next period
Indicate whether the statement is true or false
Which of the following sentences follows the normal subject-verb-complement sequence?
a. It is necessary that we withdraw the funds. b. Here are the main reasons we must withdraw the funds. c. There are two reasons for our withdrawal of funds. d. We must withdraw the funds for two reasons.
When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy
Indicate whether the statement is true or false
Did Amaranth evade NYMEX regulations in August 2006? Explain
What will be an ideal response?