Question
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Hickingbottom Corporation has two production departments, Forming and Finishing. 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 Finishing 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 | Finishing | |
---|---|---|
Machine-hours | 17,000 | 15,000 |
Direct labor-hours | 1,000 | 7,000 |
Total fixed manufacturing overhead cost | $ 96,900 | $ 65,800 |
Variable manufacturing overhead per machine-hour | $ 2.00 | |
Variable manufacturing overhead per direct labor-hour | $ 3.60 |
During the current month the company started and finished Job M381. The following data were recorded for this job:
Job M381: | Forming | Finishing |
---|---|---|
Machine-hours | 80 | 30 |
Direct labor-hours | 30 | 40 |
Direct materials | $ 840 | $ 350 |
Direct labor cost | $ 750 | $ 1,000 |
The total job cost for Job M381 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$616
$1,870
$4,076
$2,206
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