Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing...
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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: Casting Customizing Machine-hours 15,400 12,400 Direct labor-hours 5.000 6,200 Total fixed manufacturing overhead cost $ 93,940$ 58,900 Variable manufacturing overhead per machine-hour $ 3.00 Variable manufacturing overhead per direct labor-hour $ 5.90 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Casting Customizing Machine-hours 90 40 Direct labor-hours 12 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) 70 $95,480.00 $852.00 $426.00 $1,078.00
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