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Company AA has two production departments, Machining and Finishing. They use Job-Order-Costing system and compute a predetermined overhead rate in each department. The machining department

Company AA has two production departments, Machining and Finishing. They use Job-Order-Costing system and compute a predetermined overhead rate in each department. The machining department bases its overhead rate on machine hours and the Finishing department bases it on direct labor hours. The company has the following estimates at the beginning of the year:

Machine

Finishing

Machine hours

18,000

11,000

Direct labor hours

2000

9000

Total fixed manu. overhead

$102,600

$96,300

Variable manu. Overhead per machine hour

2.1

Variable overhead per direct labor hour

$3.90

During the month, the company finished Job K344. The following data was recorded for the job:

Job K344: machining finishing

Machine hours 80 30

Direct labor hours 20 40

The amount of overhead applied in the machining department for job K344 is closest to:

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