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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
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 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 Forming 19,000 Assembly 15,000 Direct labor-hours 4,000 Total fixed manufacturing overhead cost $129,200 8,000 $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: Machine-hours Forming Assembly 80 10 Direct labor-hours Direct materials 30 48 $ 730 $ 388 Direct labor cost $ 900 $1,200 4 The total amount of overhead applied in both departments to Job T288 is closest to: (Round your intermediate calculations to 2 decimal places.)
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