Barbeau Corporation Has Two Production Departments, Milling and Customizing

question 121

Multiple Choice

Barbeau 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: During the current month the company started and finished Job A492. The following data were recorded for this job:
The estimated total manufacturing overhead for the Customizing Department is closest to:

• A) $63,500
• B) $21,500
• C) $42,000
• D) $33,853

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