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:  FormingAssemblyMachine-hours 19,000 15,000Direct labor-hours 4,000 8,000Total fixed manufacturing overhead cost$129,200$77,600Variable 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:FormingAssemblyMachine-hours 80 10Direct labor-hours 30 40Direct materials$730$380Direct labor cost$900$1,200The total amount of overhead applied in both departments to Job T288 is closest to:

A. $1,180
B. $1,688
C. $508
D. $672


Answer: C

Business

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