(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	17,600	15,600
Direct labor-hours	6,700	7,800
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:	Casting	Customizing
Machine-hours	70	60
Direct labor-hours	15	90

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

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

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