Use the Information Below to Answer the Following Question(s)

question 18

Multiple Choice

Use the information below to answer the following question(s) .
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the total manufacturing cost of Job 892 using budget costing?

• A) $9,900
• B) $12,300
• C) $12,080
• D) $12,255
• E) $12,075

---

Definitions:

Streptococci

A genus of coccus (spherical) bacteria that are often found in chains or pairs and can cause a variety of infections in humans and animals.

Chains

A series of connected links or rings typically made of metal used for fastening, pulling, bearing loads, or restraint.

Strep Throat

An infection caused by Streptococcus bacteria that results in a sore, scratchy throat.

Streptococci

A genus of round-shaped bacteria, some strains of which can cause diseases in humans such as strep throat, rheumatic fever, and other infections.