Barbeau Corporation has two production departments, Milling and Customizeg The company unes a job-order costing system and computes a predetentned overhead rate in each production department The Ming Department's predetermined overhead rate is based on machine hours and the Custoring Depart based on direct labor company had made the following estimates med overhead t e beginning of the cament year the Kachine-hours Direct laber-hours Total fixed ma 36 M2 Milli 17,000 2,000 $ 119,000 cturing overhead cost Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job A92. The following data were recorded for this job Milling 90 Customizing 20 20 50 Direct labor firs Customizing 13,000 5,000 $ 42,000 $4.30
Barbeau Corporation has two production departments, Milling and Customizeg The company unes a job-order costing system and computes a predetentned overhead rate in each production department The Ming Department's predetermined overhead rate is based on machine hours and the Custoring Depart based on direct labor company had made the following estimates med overhead t e beginning of the cament year the Kachine-hours Direct laber-hours Total fixed ma 36 M2 Milli 17,000 2,000 $ 119,000 cturing overhead cost Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job A92. The following data were recorded for this job Milling 90 Customizing 20 20 50 Direct labor firs Customizing 13,000 5,000 $ 42,000 $4.30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Barbeau Corporation has two production departments, Milling and Custoring The company uses a job-order costing system and computes a predetermined overhead rate in each production department The
Miling Department's predetermined overhead rate is based on machine hours and the Custorizing 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
Kachine-hours
Direct labor-hours
Total fixed manufacturing overhead cost
Milling
90
20
Variable manufacturing overhead per machine hour
Variable manufacturing overhead per direct labor-hour
During the current month the company started and finished Job A492. The following data were recorded for this job
Joe A492
Machine hours
Direct labor ours
The estimated total manufacturing overneed for the Customing Department is closest to
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$63,500
$21,500
Customizing
20
50
$42,000
milling
The estimated total manufacturing overhead for the Customizing Department is closest to:
$33,853
17,000
2,000
$ 119,000
$1.60
Customizing
11,000
5,000
$ 42,000
14.30
n
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