Reference no: EM132823021
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
What 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