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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