Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each productiondepartment. The Milling 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 thebeginning of the current year, the company had made the following estimates:Machine-hoursDirect labor-hoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourMilling18,0004,000$ 113,400Customizing13,0007,000$ 64,400$ 1.60$ 3.90During the current month the company started and finished Job A319. The following data were recorded for this job:Job A319:Machine-hoursDirect labor-hoursDirect materialsDirect labor costMilling6020$ 655Customizing1060$ 305$ 400$ 1,200The amount of overhead applied in the Customizing Department to Job A319 is closest to:Note: Round your intermediate calculations to 2 decimal places.Multiple Choice$234.00$786.00$552.00$91,700.00

Step 1:Computation of the total estimated manufacturing overhead cost in Customizing…

Answered: Comans Corporation has two production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Frame 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour O $24,000 O $110,400 $86,400 Casting Customizing 19,000 1,000 $ 138,700 $ 1.60 The estimated total manufacturing overhead for the Customizing Department is closest to: $60,379 11,000 8,000 $ 86,400 S 3.00
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