Question
Deloria 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
Deloria 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 | 19,000 | 15,000 |
Direct labor-hours | 4,000 | 8,000 |
Total fixed manufacturing overhead cost | $ 129,200 | $ 77,600 |
Variable manufacturing overhead per machine-hour | $ 1.60 | |
Variable manufacturing overhead per direct labor-hour | $ 3.00 |
During the current month the company started and finished Job T288. The following data were recorded for this job:
Job T288: | Forming | Assembly |
---|---|---|
Machine-hours | 80 | 10 |
Direct labor-hours | 30 | 40 |
Direct materials | $ 730 | $ 380 |
Direct labor cost | $ 900 | $ 1,200 |
The estimated total manufacturing overhead for the Assembly Department is closest to:
Multiple Choice
$77,600
$24,000
$101,600
$56,674
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