Collini Corporation Has Two Production Departments, Machining and Customizing

Multiple Choice

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing 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 T268. The following data were recorded for this job:

-The total amount of overhead applied in both departments to Job T268 is closest to:

A) $616
B) $715
C) $2,046
D) $1,331