Elentrot 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 25,000 17,000 10,000 7,000 $ $ 28,700 135,000 $ 1.20 $ 4.70 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours Direct labor-hours Machining Customizing 60 20 40 .60 The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $30,000
Elentrot 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Machining Customizing 25,000 17,000 10,000 7,000 $ $ 28,700 135,000 $ 1.20 $ 4.70 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours Direct labor-hours Machining Customizing 60 20 40 .60 The estimated total manufacturing overhead for the Machining Department is closest to: Multiple Choice $30,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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