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Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing...

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Accounting

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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: Casting Customizing Machine-hours 20,000 13,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $152,000 $6B, 600 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 4.30 The predetermined overhead rate for the Casting Department is closest to $ 2.10 Multiple Choice $970 per machine-hour 57.60 per machine-hour Multiple Choice $9.70 per machine-hour $7.60 per machine hour $2.10 per machine hour 52771 por machine-hour

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