(Solved) Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a ...

Ahlheim 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	16,000	15,000
Direct labor-hours	2,000	6,000
Total fixed manufacturing overhead cost	$ 102,400	$ 55,200
Variable manufacturing overhead per machine-hour	$ 2.30
Variable manufacturing overhead per direct labor-hour		$ 4.50

During the current month the company started and finished Job T924. The following data were recorded for this job:

Job T924:	Forming	Assembly
Machine-hours	70	20
Direct labor-hours	30	40
Direct materials	$870	$385
Direct labor cost	$630	$840

The estimated total manufacturing overhead for the Assembly Department is closest to:

▸ $27,000

▸ $55,200

▸ $82,200

▸ $47,700

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Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a ...

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