Garza 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 Machine-hours 20,000 13,000 1,000 $ 152,000 $ 2.10 Direct labor-hours 7,000 Total fixed manufacturing overhead cost $ 68,600 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 4.30 The predetermined overhead rate for the Casting Department is closest to: Multiple Choice $2.10 per machine-hour $7.60 per machine-hour $27.71 per machine-hour $9.70 per machine-hour

Garza 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 Machine-hours 20,000 13,000 1,000 $ 152,000 $ 2.10 Direct labor-hours 7,000 Total fixed manufacturing overhead cost $ 68,600 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 4.30 The predetermined overhead rate for the Casting Department is closest to: Multiple Choice $2.10 per machine-hour $7.60 per machine-hour $27.71 per machine-hour $9.70 per machine-hour

Name: Garza Corporation has two production departments, Casting and Customi
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Description: Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes apredetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is b

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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Garza 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 The estimated total manufacturing overhead for the Customizing Department is closest to: Casting 13,000 19,000 $ 62,400 $ 1.20 Customizing 16,000 4,000 $ 16,400 4.50