(Solved) Mahon Corporation has two production departments, Casting and Customizing. The company uses a ...

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:

	Casting	Customizing
Machine-hours	18,000	14,000
Direct labor-hours	2,000	7,000
Total fixed manufacturing overhead cost	$ 124,200	$ 68,600
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:	Casting	Customizing
Machine-hours	70	30
Direct labor-hours	10	60

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

▸ $588.00

▸ $95,200.00

▸ $816.00

▸ $228.00

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Mahon Corporation has two production departments, Casting and Customizing. The company uses a ...

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