Vanliere Corporation Has Two Production Departments, Machining and Finishing

Multiple Choice

Vanliere Corporation has two production departments, Machining and Finishing. 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 Finishing 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 A803. The following data were recorded for this job:

-The amount of overhead applied in the Machining Department to Job A803 is closest to:

A) $828.00
B) $792.00
C) $171.00
D) $174,800.00