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
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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 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 Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Forming Assembly 19,000 15,000 4,000 $ 129,200 $ 1.60 8,000 $ 77,600. $ 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 Direct labor-hours Forming 80 Assembly 10 30 40 $ 730 $ 380 Direct labor cost $ 900 $ 1,200 Direct materials The estimated total manufacturing overhead for the Assembly Department is closest to:
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