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gringoboy6 gringoboy6
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A year ago

Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Assembly 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:

FormingAssembly
Machine-hours19,00015,000
Direct labor-hours4,0008,000
Total fixed manufacturing overhead cost$ 129,200$ 77,600
Variable manufacturing overhead per machine-hour$ 1.60
Variable manufacturing overhead per direct labor-hour$ 3.00

During the current month the company started and finished Job T288. The following data were recorded for this job:

Job T288:FormingAssembly
Machine-hours8010
Direct labor-hours3040
Direct materials$ 730$ 380
Direct labor cost$ 900$ 1,200

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



▸ $77,600

▸ $101,600

▸ $56,674

▸ $24,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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Ms T.Ms T.
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