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Boward Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each
Boward Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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: Milling Assembly Machine-hours Direct labor-hours Variable manufacturing overhead per machine-hour 18,000 2,000 12,000 7,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour $ 120,600 $ 76,300 $ 2.00 $ 4.30 During the current month the company started and finished Job T818. The following data were recorded for this job: Job T818: Machine-hours Milling Assembly Direct labor-hours 50 10 30 40 The total amount of overhead applied in both departments to Job T818 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,651 $608 $435 $1,043
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