Stoke Corporation Has Two Production Departments, Forming and Assembly

question 178

Multiple Choice

Stoke 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 A460. The following data were recorded for this job:

-The amount of overhead applied in the Assembly Department to Job A460 is closest to:

• A) $415.00
• B) $150.00
• C) $565.00
• D) $79,100.00

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