Comans Corporation has two production departments, Milling and Customizing. 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 Customizing 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: MillingCustomizingMachine-hours 18,000 13,000Direct labor-hours 4,000 7,000Total fixed manufacturing overhead cost$113,400$64,400Variable manufacturing overhead per machine-hour$1.60 Variable manufacturing overhead per direct labor-hour $3.90 During the current month the company started and finished Job A319. The following data were
recorded for this job: Job A319:MillingCustomizingMachine-hours 60 10Direct labor-hours 20 60Direct materials$655$305Direct labor cost$400$1,200The amount of overhead applied in the Milling Department to Job A319 is closest to:
A. $474.00
B. $142,200.00
C. $96.00
D. $552.00
Answer: A
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