Marciante Corporation Has Two Production Departments, Casting and Finishing

Multiple Choice

Marciante Corporation has two production departments, Casting and Finishing. 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 Finishing 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 Casting Department is closest to:

A) $387,260
B) $134,300
C) $28,900
D) $105,400