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: Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Casting Customizing 60 Direct labor-hours 10 Casting 20,400 7,100 50 90 16,400 8,200 Variable manufacturing overhead per machine-hour $1.50 Variable manufacturing overhead per direct labor-hour $3.00 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Machine-hours $157,080 $ 68,880 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) O $720.00 O $1,026.00 O $93,480.00 O $360.00

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question 12?
QUESTION 12
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:
Customizing
Machine-hours
Direct labor-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Casting
20,400
7,100
50
90
16,400
8,200
$157,080 $ 68,880
$1.50
$3.00
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
Direct labor-hours 10
The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
O $720.00
O $1,026.00
O $93,480.00
O $360.00
Transcribed Image Text:QUESTION 12 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: Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting 20,400 7,100 50 90 16,400 8,200 $157,080 $ 68,880 $1.50 $3.00 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 Direct labor-hours 10 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) O $720.00 O $1,026.00 O $93,480.00 O $360.00
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