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moreme moreme
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A year ago

Prayer 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-hours19,00013,000
Direct labor-hours1,0008,000
Total fixed manufacturing overhead cost$ 110,200$ 68,800
Variable manufacturing overhead per machine-hour$ 2.00
Variable manufacturing overhead per direct labor-hour$ 3.60

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



▸ $148,200

▸ $110,200

▸ $38,000

▸ $299,725
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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strawberry8971strawberry8971
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A year ago
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