Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in 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: MachiningCustomizingMachine-hours 27,00018,000Direct labor- hours7,0006,000Total fixed manufacturing overhead cost$ 145,800$ 18,600Variable manufacturing overhead per machine- hour$ 1.80 Variable manufacturing overhead per direct labor- hour $ 3.10 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272:Machining CustomizingMachine-hours4030Direct labor-hours3030 The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $178,200 $194,400 $145,800 $48,600

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Chapter1: Financial Statements And Business Decisions
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Eisentrout Corporation has two production departments,
Machining and Customizing. The company uses a job-order
costing system and computes a predetermined overhead rate
in 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:
Machining CustomizingMachine-hours27,00018,000Direct labor-
hours7,0006,000Total fixed manufacturing overhead cost$
145,800$ 18,600Variable manufacturing overhead per machine-
hour $ 1.80 Variable manufacturing overhead per direct labor-
hour $ 3.10
During the current month the company started and finished
Job T272. The following data were recorded for this job:
Job T272:MachiningCustomizingMachine-hours4030Direct
labor-hours3030
The estimated total manufacturing overhead for the
Machining Department is closest to:
Multiple Choice
$178,200
$194,400
$145,800
$48,600
Transcribed Image Text:Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining CustomizingMachine-hours27,00018,000Direct labor- hours7,0006,000Total fixed manufacturing overhead cost$ 145,800$ 18,600Variable manufacturing overhead per machine- hour $ 1.80 Variable manufacturing overhead per direct labor- hour $ 3.10 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272:MachiningCustomizingMachine-hours4030Direct labor-hours3030 The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $178,200 $194,400 $145,800 $48,600
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