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knoeller33 knoeller33
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A year ago

Barbeau Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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:

MillingCustomizing
Machine-hours17,00013,000
Direct labor-hours2,0005,000
Total fixed manufacturing overhead cost$ 119,000$ 42,000
Variable manufacturing overhead per machine-hour$ 1.60
Variable manufacturing overhead per direct labor-hour$ 4.30

During the current month the company started and finished Job A492. The following data were recorded for this job:

Job A492:MillingCustomizing
Machine-hours9020
Direct labor-hours2050

The estimated total manufacturing overhead for the Customizing Department is closest to:



▸ $63,500

▸ $21,500

▸ $42,000

▸ $33,853
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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skdiveelisskdiveelis
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