Eisentrout Corporation Has Two Production Departments, Machining and Customizing

Multiple Choice

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

A) $40,950
B) $19,800
C) $56,400
D) $76,200