Bear Claw Industries Uses a Job-Order Costing System The Following Information Was Available for Job No

Multiple Choice

Bear Claw Industries uses a job-order costing system. The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead based on direct labor hours. The company made the following estimates at the beginning of the current year: $$\begin{array} { l c c } \text { Manufacturing overhead cost } & \text { Molding } & \text { Assembly }\\\text { Machine hours } & \$ 700,000 & \$ 400,000 \\\text { Direct labor hours } & 10,000 & 4,000 \\& 12,000 & 16,000\end{array}$$
The following information was available for Job No. 7-29, which was started and completed during August: $\begin{array}{lcc}&\text { Job No. } 7-29\\&\text { Molding } & \text { Assembly }\\\text { Direct materials } & \$ 3,500 & \$ 7,500 \\\text { Direct labor } & \$ 9,000 & \$ 12,500 \\\text { Direct labor hours } & 900 & 1,250 \\\text { Machine hours } & 500 & 400\end{array}$
The predetermined overhead rate for the molding department is

A) $100.
B) $83.
C) $70.
D) $50.