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vurt777 vurt777
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A year ago

Swango 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-hours19,00011,000
Direct labor-hours1,0008,000
Total fixed manufacturing overhead cost$ 138,700$ 86,400
Variable manufacturing overhead per machine-hour$ 1.60
Variable manufacturing overhead per direct labor-hour$ 3.00

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



▸ $24,000

▸ $110,400

▸ $86,400

▸ $60,379
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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NapoukahNapoukah
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