Business, 11.02.2020 17:23 kie27

Eisentrout 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:

Machining Customizing
Machine-hours 13,000 29,000
Direct labor-hours 19,000 5,000
Total fixed manufacturing overhead cost $68,900 $20,500
Variable manufacturing overhead per machine-hour $1
Variable manufacturing overhead per direct labor-hour $4.20

During the current month the company started and finished Job T272. The following data were recorded for this job:

Job T272: Machining Customizing
Machine-hours 30 40
Direct labor-hours 40 50

The estimated total manufacturing overhead for the Machining Department is closest to:

a. $68,900
b. $81,900
c. $97,900
d. $13,000

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Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a...

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