Deloria Corporation Has Two Production Departments, Forming and Assembly

Multiple Choice

Deloria 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 T288. The following data were recorded for this job:
The total amount of overhead applied in both departments to Job T288 is closest to: (Round your intermediate calculations to 2 decimal places.)

A) $508
B) $672
C) $1,688
D) $1,180