Ahlheim Corporation Has Two Production Departments, Forming and Assembly

Multiple Choice

Ahlheim 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 T924. The following data were recorded for this job:
The estimated total manufacturing overhead for the Forming Department is closest to:

A) $36,800
B) $102,400
C) $309,867
D) $139,200