Stoke 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 20,000 15,000Direct labor-hours 2,000 7,000Total fixed manufacturing overhead cost$138,000$58,100Variable manufacturing overhead per machine-hour$2.30 Variable manufacturing overhead per direct labor-hour $3.00During the current month the company started and finished Job A460. The following data were recorded for
this job:Job A460:FormingAssemblyMachine-hours 80 10Direct labor-hours 30 50The amount of overhead applied in the Forming Department to Job A460 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $184.00
B. $184,000.00
C. $664.00
D. $736.00
Answer: D
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