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The Gold Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a

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The Gold Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a labor hour basis in Department B. The predetermined overhead rates are 200% for Department A and 50 S/hour for Department B. Using the information below, what is the total cost of Ring A? Ring A, Ring A, Ring B, Ring B, Dept A Dept B Dept B Direct Labor $30 $150 $25 $500 Cost Direct $500 $300 $50 $200 Materials Cost Direct Labor 4 5 2 7 Hours Dept A A. $775 B. $980 C. $1,175 D. $1,290 E. $2,275 30 +30x200% +500 +4XS0 =5790 150 +150 x 200% +300+5X50 =$100

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