Boward Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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: MillingAssemblyMachine-hours 18,000 12,000Direct labor-hours 2,000 7,000Total fixed manufacturing overhead cost$120,600$76,300Variable manufacturing overhead per machine-hour$2.00 Variable manufacturing overhead per direct labor-hour $4.30During the current month the company started and finished Job T818. The following data were recorded for
this job: Job T818:Milling AssemblyMachine-hours50 30Direct labor-hours10 40The total amount of overhead applied in both departments to Job T818 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $1,651
B. $1,043
C. $608
D. $435
Answer: B
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