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 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting Job T138: Machine-hours Direct labor-hours. 17,200 5,600 $111,800 1.80 $ Customizing 13,200 6,600 $67,320 $ 3.50 During the current month the company started and finished Job T138. The following data were recorded for this job: Casting Customizing 50 80 9 100 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)

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
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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
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Job T138:
Machine-hours
Direct labor-hours
Casting
During the current month the company started and finished Job T138. The following data were recorded for this job:
Casting Customizing
80
50
9
100
17, 200
5,600
$111,800
$ 1.80
Customizing
13,200
6,600
$67,320
$ 3.50
The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
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 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job T138: Machine-hours Direct labor-hours Casting During the current month the company started and finished Job T138. The following data were recorded for this job: Casting Customizing 80 50 9 100 17, 200 5,600 $111,800 $ 1.80 Customizing 13,200 6,600 $67,320 $ 3.50 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
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