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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
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: Group of answer choices $77,600 $101,600 $56,674 $24,000
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