Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system a

[answerhappygod]

Mahon Corporation Has Two Production Departments Casting And Customizing The Company Uses A Job Order Costing System A 1 (32.81 KiB) Viewed 49 times

Mahon 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Direct labor-hours Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 3.70 During the current month the company started and finished Job T138. The following data were recorded for this job: Job 7138: Machine-hours Casting 100 Casting 20,400 7,500 $ 130,560 $ 1.90 Customizing 50 100 Customizing 17,400 8,700 $ 91,350 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)