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Business, 17.09.2019 21:10 harpermags7830

Garza 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 customizingmachine-hours 12,000 19,000direct labor-hours 10,000 7,000total fixed manufacturing overhead cost $42,000 $38,500variable manufacturing overhead per machine-hour $1.50 variable manufacturing overhead per direct labor-hour $5.00the estimated total manufacturing overhead for the customizing department is closest to: multiple choicea. $38,500b. $35,000c. $92,000d. $73,500

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