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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 Departments predetermined overhead rate is based on machine-hours and the Assembly Departments 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:

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