Eisentrout 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 T272. The following data were recorded for this job:
The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $76,200.00
B) $762.00
C) $564.00
D) $198.00

Question

Eisentrout 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 T272. The following data were recorded for this job:
 The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $76,200.00 
B) $762.00 
C) $564.00 
D) $198.00

Quizplus · Accepted Answer

The Answer of Eisentrout 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 T272. The following data were recorded for this job:
 The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $76,200.00 
B) $762.00 
C) $564.00 
D) $198.00

Eisentrout Corporation Has Two Production Departments, Machining and Customizing