Barbeau 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 17,000 13,000Direct labor-hours 2,000 5,000Total fixed manufacturing overhead cost$119,000$42,000Variable manufacturing overhead per machine-hour$1.60 Variable manufacturing overhead per direct labor-hour $4.30During the current month the company started and finished Job A492. The following data were
recorded for this job:Job A492:MillingCustomizingMachine-hours 90 20Direct labor-hours 20 50The amount of overhead applied in the Milling Department to Job A492 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $144.00
B. $146,200.00
C. $756.00
D. $774.00
Answer: D
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