Mathematics, 19.02.2021 16:20 kristinashau

Comans 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 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: Milling Customizing
Machine-hours 18,000 13,000
Direct labor-hours 4,000 7,000
Total fixed manufacturing overhead cost $ 113,400 $ 64,400
Variable manufacturing overhead per machine-hour $ 1.60
Variable manufacturing overhead per direct labor-hour $ 3.90

During the current month the company started and finished Job A319. The following data were recorded for this job:

Job A319: Milling Customizing
Machine-hours 60 10
Direct labor-hours 20 60
Direct materials $ 655 $ 305
Direct labor cost $ 400 $ 1,200The amount of overhead applied in the Milling Department to Job A319 is closest to:
A. $552.00
B. $474.00
C. $142,200.00
D. $96.00â€‹

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Comans Corporation has two production departments, Milling and Customizing. The company uses a job-o...

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