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cheezymac cheezymac
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A year ago

Kroeker 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-hours17,00012,000
Direct labor-hours1,0009,000
Total fixed manufacturing overhead cost$ 112,200$ 81,000
Variable manufacturing overhead per machine-hour$ 1.70
Variable manufacturing overhead per direct labor-hour$ 4.30

During the current month the company started and finished Job T898. The following data were recorded for this job:

Job T898:MillingCustomizing
Machine-hours8030
Direct labor-hours2050

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



▸ $240,833

▸ $141,100

▸ $28,900

▸ $112,200
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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moqamoqamoqamoqa
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