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15. The Turquoise Company uses predetermined overhead rates to apply manufacturing overhead jobs. The predetermined overhead rate is based on labor cost in Dept. A

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15. The Turquoise Company uses predetermined overhead rates to apply manufacturing overhead jobs. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. At the beginning of the year, the company made the following estimates: Denta Dept B Direct labor cost $65,000 $42,000 Manufacturing Overhead $91,000 $48,000 Direct labor hours 8,125 10,000 Machine hours 3,000 12,000 They recently received an order for a job from a company in Vermont. The expected cost of this job isi Dept A Dept B Direct labor cost $7,000 $2.520 Direct labor hours 875 600 Machine hours 100 435 What is the estimated overhead cost for this job? A. $1,737.50 B. $5,038.75 C. $7,400.00 D. $11,540.00 E. None of the above

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