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 16,000 11,000 Direct labor-hours 2,000 6,000 Total fixed manufacturing overhead cost $ 104,000 $ 56,400 Variable manufacturing overhead per machine-hour $ 2.10 Variable manufacturing overhead per direct labor-hour $ 3.30 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 60 30 Direct labor-hours 10 60The amount of overhead applied in the Machining Department to Job T272 is closest to: $137,600.00 $126.00 $516.00 $564.00

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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:

 


Machining Customizing
Machine-hours 16,000 11,000
Direct labor-hours 2,000 6,000
Total fixed manufacturing overhead cost $ 104,000 $ 56,400
Variable manufacturing overhead per machine-hour $ 2.10
Variable manufacturing overhead per direct labor-hour $ 3.30

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 60 30
Direct labor-hours 10 60The amount of overhead applied in the Machining Department to Job T272 is closest to:
$137,600.00
$126.00
$516.00
$564.00

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