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Garza Corporation Has Two Production Departments, Casting and Customizing

Question 314

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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: 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:   The estimated total manufacturing overhead for the Customizing Department is closest to: A)  $55,400 B)  $21,600 C)  $40,800 D)  $19,200 The estimated total manufacturing overhead for the Customizing Department is closest to:


A) $55,400
B) $21,600
C) $40,800
D) $19,200

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