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Ti Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production

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Ti Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 Casting 17,000 1,000 $129,200 $ 1.80 Assembly 10,000 5,000 $46,500 $ 3.80 During the current month the company started and finished Job P131. The following data were recorded for this job: Job P131: Casting Assembly Machine-hours 90 20 Direct labor-hours 20 60 The predetermined overhead rate for the Casting Department is closest to Multiple Choice $9.40 per machine-hour $7.60 per machine-hour $1,80 per machine-hour $31.96 per machine-hour

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