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Garza Corporation Has Two Production Departments, Casting and Customizing

Question 268

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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)  $54,110 B)  $30,100 C)  $98,700 D)  $68,600
-The estimated total manufacturing overhead for the Customizing Department is closest to:


A) $54,110
B) $30,100
C) $98,700
D) $68,600

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