Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. garza corporation has two production departments,

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

70.2K

Verified Solution

Question

Accounting

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

$

68,600

Variable manufacturing overhead per machine-hour

$

2.10

Variable manufacturing overhead per direct labor-hour

$

4.30

The predetermined overhead rate for the Casting Department is closest to:

a

$7.60 per machine-hour

b

$27.71 per machine-hour

c

$9.70 per machine-hour

d

$2.10 per machine-hour

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

skeletal muscle deprived of adequate ATP supplies will sequester all free calcium ions into the...

Biology
Q

What is polygenic inheritance occurs when one gene influences many characteristics a single phenotypic character...

Biology
Q

25 38 Solving Trigonometric Equations Find all solutions of the given equation 25 cos 0...

Calculus
Q

9 Solve for x in the equation x4 81 0 Leave your results in polar...

Calculus
Q

If parts tak must be completed sequentially If you skip a part of the question...

Calculus
Q

Find the dimensions of the rectangle with perimeter 1360 centimeters and maximum area length width...

Calculus
Q

Boyd Salzer, an unmarried individual, has $248,950 AGI consisting of the following items. ...

Accounting
Q

Define the total variable overhead cost variance and explain the two components that makeup this...

Accounting
Q

ABC Inc, uses the FIFO cost formula in a periodic inventory system. Ending inventory at...

Accounting
Q

En su primer ao de operaciones, Cloudbox tiene ventas a crdito por valor de 236.000...

Accounting
Q

Executive officers of Stoneham Company are wrestling with their budget for the next year. The...

Accounting
Q

a certain => 0 9. The duration of a perpetual annuity, under a flat term...

Finance