Collini Corporation Has Two Production Departments, Machining and Customizing

question 218

Multiple Choice

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining 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 T268. The following data were recorded for this job:

-The total job cost for Job T268 is closest to:

• A) $2,595
• B) $616
• C) $4,831
• D) $2,236

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Definitions:

Henri Fayol

A French mining engineer and management theorist known for developing a general theory of business administration and for his 14 Principles of Management.

Mary Parker Follett

A pioneering theorist in the field of organizational behavior and management, who emphasized the importance of democratic leadership and people-centric management practices.

Classical Theorists

Scholars and thinkers who have contributed to the foundation of classical theories in various fields, focusing on formal structures and systems.

Performance Excellence

The achievement of outstanding performance in an organization, through managing processes and resources to achieve and sustain high levels of success.