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

Deloria 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	19,000	15,000
Direct labor-hours	4,000	8,000
Total fixed manufacturing overhead cost	$ 129,200	$ 77,600
Variable manufacturing overhead per machine-hour	$ 1.60
Variable manufacturing overhead per direct labor-hour		$ 3.00

During the current month the company started and finished Job T288. The following data were recorded for this job:

Job T288:	Forming	Assembly
Machine-hours	80	10
Direct labor-hours	30	40
Direct materials	$ 730	$ 380
Direct labor cost	$ 900	$ 1,200

The predetermined overhead rate for the Assembly Department is closest to:

▸ $3.00 per direct labor-hour

▸

$12.70 per direct labor-hour

▸ $9.70 per direct labor-hour

▸ $5.35 per direct labor-hour

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

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