Mahon 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 CustomizingMachine-hours $ 15,600 13,600Direct labor-hours $ 5,600 6,800Total fixed manufacturing overhead cost $ 95,160 $ 58,480Variable manufacturing overhead per machine-hour $ 2.30Variable manufacturing overhead per direct labor-hour $ 4.50During the current month the company started and finished Job T138. The following data were recorded for this job:Job T138: Casting CustomizingMachine-hours 100 30Direct labor-hours 12 80 The amount of overhead applied in the Customizing Department to Job T138 is closest to:
Describe why the traditional line-item budgeting is the best for…
Describe why the traditional line-item budgeting is the best for local governments and explain why?