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: FormingAssemblyMachine-hours 16,000 15,000Direct labor-hours 2,000 6,000Total fixed manufacturing overhead cost$102,400$55,200Variable 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:FormingAssemblyMachine-hours 70 20Direct labor-hours 30 40Direct materials$870$385Direct labor cost$630$840The total amount of overhead applied in both departments to Job T924 is closest to:
A. $1,705
B. $1,157
C. $548
D. $609
Answer: B
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