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Bluffinmuffin Bluffinmuffin
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A year ago

Eisentrout 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:

MachiningCustomizing
Machine-hours16,00011,000
Direct labor-hours2,0006,000
Total fixed manufacturing overhead cost$ 104,000$ 56,400
Variable manufacturing overhead per machine-hour$ 2.10
Variable manufacturing overhead per direct labor-hour$ 3.30

During the current month the company started and finished Job T272. The following data were recorded for this job:

Job T272:MachiningCustomizing
Machine-hours6030
Direct labor-hours1060

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



▸ $40,950

▸ $19,800

▸ $56,400

▸ $76,200
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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CrazyW27CrazyW27
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A year ago
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Thanks for your help!!
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