Kroeker 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 T898. The following data were recorded for this job:
The estimated total manufacturing overhead for the Milling Department is closest to:
A) $240,833
B) $141,100
C) $28,900
D) $112,200

Question

Kroeker 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 T898. The following data were recorded for this job:
 The estimated total manufacturing overhead for the Milling Department is closest to:
A) $240,833 
B) $141,100 
C) $28,900 
D) $112,200

Quizplus · Accepted Answer

The Answer of Kroeker 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 T898. The following data were recorded for this job:
 The estimated total manufacturing overhead for the Milling Department is closest to:
A) $240,833 
B) $141,100 
C) $28,900 
D) $112,200

Kroeker Corporation Has Two Production Departments, Milling and Customizing