Vanliere Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing 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: MachiningFinishingMachine-hours 19,000 11,000Direct labor-hours 3,000 6,000Total fixed manufacturing overhead cost$138,700$52,800Variable manufacturing overhead per machine-hour$1.90 Variable manufacturing overhead per direct labor-hour $3.80 During the current month the company started and finished Job A803. The following data
were recorded for this job: Job A803:MachiningFinishingMachine-hours 90 20Direct labor-hours 20 60The amount of overhead applied in the Machining Department to Job A803 is closest to:
A. $174,800.00
B. $171.00
C. $828.00
D. $792.00
Answer: C
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