Barbeau Corporation Has Two Production Departments, Milling and Customizing

Multiple Choice

Barbeau 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 A492. The following data were recorded for this job:
The estimated total manufacturing overhead for the Customizing Department is closest to:

A) $63,500
B) $21,500
C) $42,000
D) $33,853