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cheezymac cheezymac
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A year ago

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:

CastingCustomizing
Machine-hours17,60015,600
Direct labor-hours6,7007,800
Total fixed manufacturing overhead cost$ 105,600$ 66,300
Variable manufacturing overhead per machine-hour$ 1.90
Variable manufacturing overhead per direct labor-hour$ 3.80

During the current month the company started and finished Job T138. The following data were recorded for this job:

Job T138:CastingCustomizing
Machine-hours7060
Direct labor-hours1590

The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)



▸ $966.00

▸ $95,940.00

▸ $1,107.00

▸ $483.00
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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yoorimchiyoorimchi
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A year ago
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