Kalp Corporation Has Two Production Departments, Machining and Finishing

question 231

Multiple Choice

Kalp 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: During the current month the company started and finished Job K928. The following data were recorded for this job:
The total amount of overhead applied in both departments to Job K928 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $1,405
• B) $2,000
• C) $810
• D) $595

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Definitions:

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