Swango Corporation Has Two Production Departments,Casting and Customizing

question 162

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:

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A personal name of Italian or Portuguese origin, potentially referring to notable individuals in various fields.

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A brass wind instrument with a flared bell and a bright, penetrating tone, played by blowing air through closed lips.

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