Tiff Corporation Has Two Production Departments, Casting and Assembly

Multiple Choice

Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 P131. The following data were recorded for this job:

-The amount of overhead applied in the Assembly Department to Job P131 is closest to:

A) $228.00
B) $558.00
C) $65,500.00
D) $786.00