FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a
Machining Customizing
Machine-hours 16,000 11,000
Direct labor-hours 2,000 6,000
Total fixed
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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