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: MachiningCustomizingMachine-hours 16,000 11,000Direct labor-hours 2,000 6,000Total fixed manufacturing overhead cost$104,000$56,400Variable manufacturing overhead per machine-hour$2.10 Variable manufacturing overhead per direct labor-hour $3.30 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272:MachiningCustomizingMachine-hours 60 30Direct labor-hours 10 60The estimated total manufacturing overhead for the Machining Department is closest to: $137,600 $33,600 $104,000 $310,933

Estimated total manufacturing overhead for the Machining Department = Total fixed manufacturing…

Answered: Eisentrout Corporation has two…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 15P: The following information, taken from the books of Herman Brothers Manufacturing represents the...

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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:

	Machining	Customizing
Machine-hours		16,000		11,000
Direct labor-hours		2,000		6,000
Total fixed manufacturing overhead cost	$	104,000	$	56,400
Variable manufacturing overhead per machine-hour	$	2.10
Variable manufacturing overhead per direct labor-hour			$	3.30

During the current month the company started and finished Job T272. The following data were recorded for this job:

Job T272:	Machining	Customizing
Machine-hours		60	30
Direct labor-hours		10	60

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

		$137,600
		$33,600
		$104,000
		$310,933

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