Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing...
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Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 17,000 12,000 Direct labor-hours 1,000 9,000 Total fixed manufacturing overhead cost $ 112,200 $ 81,000 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 4.30 During the current month the company started and finished Job T898. The following data were recorded for this job: Job T898: Milling Customizing Machine-hours 80 30 Direct labor-hours 20 50 The amount of overhead applied in the Customizing Department to Job T898 is closest to
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