Find the estimated total manufacturing overhead

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Question - 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 26,000 29,000

Direct labor-hours 20,000 4,000

Total fixed manufacturing overhead cost $119,600 $12,000

Variable manufacturing overhead per machine-hour $1.50

Variable manufacturing overhead per direct labor-hour $3.00

Required - Find the estimated total manufacturing overhead for the Customizing Department?

Reference no: EM132915823

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