(Solved) Collini Corporation has two production departments, Machining and Customizing. The company uses a ...

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining 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:

	Machining	Customizing
Machine-hours	17,000	15,000
Direct labor-hours	3,000	6,000
Total fixed manufacturing overhead cost	$ 102,000	$ 61,200
Variable manufacturing overhead per machine-hour	$ 1.70
Variable manufacturing overhead per direct labor-hour		$ 4.10

During the current month the company started and finished Job T268. The following data were recorded for this job:

Job T268:	Machining	Customizing
Machine-hours	80	30
Direct labor-hours	30	50
Direct materials	$ 720	$ 380
Direct labor cost	$ 900	$ 1,500

The total amount of overhead applied in both departments to Job T268 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $616

▸ $715

▸ $2,046

▸ $1,331

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Collini Corporation has two production departments, Machining and Customizing. The company uses a ...

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