Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing...
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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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour Machining 15,000 14,000 $58,500 $ 1.10 Customizing 15,000 3,000 $14,700 $ 4.30 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours Direct labor-hours Machining 50 30 Customizing 40 30 The estimated total manufacturing overhead for the Machining Department is closest to
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