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: Machine-hours. Multiple Choice 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 T138. The following data were recorded for this job: Job T138: Machine-hours Customizing 50 80 Direct labor-hours The amount of overhead applied in the Customizing Department to Job T138 is closest to: Note: Round your intermediate calculations to 2 decimal places. $770.00 Casting 17,200 6,000 $ 101,480 $ 1.80 Casting 60 12 Customizing 14,200 7,100 $ 59,640 $ 3.50

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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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:
Machine-hours
Direct labor-hours
Total fixed manufacturing overhead cost
Job T138:
Machine-hours.
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
During the current month the company started and finished Job T138. The following data were recorded for this job:
Customizing
50
80
Direct labor-hours
The amount of overhead applied in the Customizing Department to Job T138 is closest to:
Note: Round your intermediate calculations to 2 decimal places.
Multiple Choice
Casting
60
12
$770.00
Casting
17,200
6,000
$ 101,480
$ 1.80
Customizing
14, 200
7,100
$ 59,640
$ 3.50
Transcribed Image Text: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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Job T138: Machine-hours. Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job T138. The following data were recorded for this job: Customizing 50 80 Direct labor-hours The amount of overhead applied in the Customizing Department to Job T138 is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Casting 60 12 $770.00 Casting 17,200 6,000 $ 101,480 $ 1.80 Customizing 14, 200 7,100 $ 59,640 $ 3.50
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