Biology Forums - Study Force

Barbeau Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing 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:

	Milling	Customizing
Machine-hours	17,000	13,000
Direct labor-hours	2,000	5,000
Total fixed manufacturing overhead cost	$ 119,000	$ 42,000
Variable manufacturing overhead per machine-hour	$ 1.60
Variable manufacturing overhead per direct labor-hour		$ 4.30

During the current month the company started and finished Job A492. The following data were recorded for this job:

Job A492:	Milling	Customizing
Machine-hours	90	20
Direct labor-hours	20	50

The amount of overhead applied in the Milling Department to Job A492 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $146,200.00

▸ $144.00

▸ $756.00

▸ $774.00

Content hidden