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Romans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing...

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Accounting

Romans 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 26,000 28,000 Direct labor-hours 13,000 8,000 Total fixed manufacturing overhead cost $ 153,400 $ 30,400 Variable manufacturing overhead per machine-hour $ 1.40 Variable manufacturing overhead per direct labor-hour $ 3.00 During the current month the company

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