Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predeterminedoverhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department'spredetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:Machine-hoursDirect labor-hoursTotal fixed manufacturing overhead costJob T272:Machine-hoursDirect labor-hoursVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourDuring the current month the company started and finished Job T272. The following data were recorded for this job:Customizing3060The predetermined overhead rate for the Machining Department is closest to:Multiple ChoiceMachining6010O$22.93 per machine-hour$6.50 per machine-hour$2.10 per machine-hourMachining16,0002,000$ 104,000$ 2.10$8.60 per machine-hourCustomizing11,0006,000$ 56,400$3.30

The job order costing is the costing system that determines the total cost related to each job. This…

Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate 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: Machine-hours Direct labor-hours. Total fixed manufacturing 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 T272. The following data were recorded for this job: Job T272: Machining Customizing Machine-hours 30 60 Direct labor-hours The predetermined overhead rate for the Machining Department is closest to: Multiple Choice O $22.93 per machine-hour $6.50 per machine-hour $2.10 per machine-hour 60 10 $8.60 per machine-hour Machining 16,000 2,000 $ 104,000 $ 2.10 Customizing 11,000 6,000 $ 56,400 $3.30

Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate 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: Machine-hours Direct labor-hours. Total fixed manufacturing 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 T272. The following data were recorded for this job: Job T272: Machining Customizing Machine-hours 30 60 Direct labor-hours The predetermined overhead rate for the Machining Department is closest to: Multiple Choice O $22.93 per machine-hour $6.50 per machine-hour $2.10 per machine-hour 60 10 $8.60 per machine-hour Machining 16,000 2,000 $ 104,000 $ 2.10 Customizing 11,000 6,000 $ 56,400 $3.30

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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