Swango Corporation Has Two Production Departments, Casting and Customizing

question 93

Multiple Choice

Swango 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: The estimated total manufacturing overhead for the Customizing Department is closest to:

• A) $24,000
• B) $110,400
• C) $86,400
• D) $60,379

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Definitions:

Predictive

Relating to the ability to make accurate predictions or forecasts about future events or outcomes based on current or past data.

Acute Stressors

Threatening events that have a relatively short duration and a clear endpoint.

Duration

The amount of time that something lasts or continues.

Acculturation Stress

The psychological impact of adapting to a new culture, which can involve challenges such as learning a new language and understanding different social norms.