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Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly 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:

Forming Assembly

Machine-hours 16,000 15,000

Direct labor-hours 2,000 6,000

Total fixed manufacturing overhead cost $ 102,400 $ 55,200

Variable manufacturing overhead per machine-hour $ 2.30

Variable manufacturing overhead per direct labor-hour $ 4.50

During the current month the company started and finished Job T924. The following data were recorded for this job:

Job T924: Forming Assembly

Machine-hours 70 20

Direct labor-hours 30 40

Direct materials $ 870 $ 385

Direct labor cost $ 630 $ 840

The total amount of overhead applied in both departments to Job T924 is closest to: (Round your intermediate calculations to 2 decimal places.) A) $1,157 B) $548 C) $609 D) $1,705

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