Business, 07.03.2020 04:32 lexigarwood

Garza 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:

Casting Customizing
Machine-hours 25,000 24,000
Direct labor-hours 7,000 7,000
Total fixed manufacturing overhead cost $145,000 $35,000
Variable manufacturing overhead per machine-hour $1.10
Variable manufacturing overhead per direct labor-hour $3.20

The estimated total manufacturing overhead for the Customizing Department is closest to:

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Garza Corporation has two production departments, Casting and Customizing. The company uses a job-or...

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