Biology Forums - Study Force

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

The amount of overhead applied in the Assembly Department to Job A460 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $415.00

▸ $150.00

▸ $565.00

▸ $79,100.00

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