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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 production
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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Milling 18,000 2,000 $120,600 $ 2.00 Assembly 12,000 7,000 $ 76,300 $ 4.30 During the current month the company started and finished Job T818. The following data were recorded for this job Job T818: Milling Assembly Machine-hours Direct labor-hours 10 40 50 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 O $1651 O $608 O $435 O $1,043
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