14 Adams Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and allocates manufacturing overhead (MOH) cost using a plant-wide predetermined rate (POHR) based on machine-hours (MHs). At the beginning of the current year, the company made the following estimates : Forming FinishingTotal 10,000 MHs Machine Total fixed N Total variable O 6,000 4,000 S 42,000 11,200 S 53,200 S 12,000 S 9,600 21,600 During the most recent monthms started and completed two jobs-Job E and Job L. There were no beginning inventories. Data concerning those two jobs follow DM DL cost S 1,340 S 2.450 $ 910$ 700 Forming Finishing MHs 160 240 MHs 410 190 Job E Job L S 910 A new controller feels that Adams should use departmental rates, using departmental MHs as the allocation base. 20 Switching to the departmental POHRs will decrease the cost of Job E by $258.40. increase the cost of Job E by $216.60. keep the costs of Jobs E and L the same. increase the cost of Job E by $258.40. decrease the cost of Job E by S216.60. A. The B. C. D. th eh Ac Page 14 of 14