Compute amount of overhead applied in forming department

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Question - Stoke 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:

 

Forming

Assembly

Machine-hours

20,000

15,000

Direct labor-hours

2,000

7,000

Total fixed manufacturing overhead cost

$138,000

$58,100

Variable manufacturing overhead per machine-hour $2.30

Variable manufacturing overhead per direct labor-hour $3.00

During the current month the company started and finished Job A460. The following data were recorded for this job:

Job A460:

Forming

Assembly

Machine-hours

80

10

Direct labor-hours

30

50

Required - Compute the amount of overhead applied in the Forming Department to Job A460?

A) $184,000.00

B) $184.00

C) $736.00

D) $664.00

Reference no: EM132844203

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