Ahlheim Corporation Has Two Production Departments, Forming and Assembly

question 90

Multiple Choice

Ahlheim 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: During the current month the company started and finished Job T924. The following data were recorded for this job:
The total amount of overhead applied in both departments to Job T924 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $1,157
• B) $548
• C) $609
• D) $1,705

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