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e 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

e 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

FINANCIAL ACCOUNTING
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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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 19,400 6,500 $128,040 %24 15,400 7,700 $83,930 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost 1.90 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 24 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 60 30 Direct labor-hours 11 100 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $555.00 $113,190.00 $1,470.00
Transcribed Image Text: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 19,400 6,500 $128,040 %24 15,400 7,700 $83,930 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost 1.90 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 24 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 60 30 Direct labor-hours 11 100 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $555.00 $113,190.00 $1,470.00
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