Kroeker Corporation Has Two Production Departments, Milling and Customizing

Multiple Choice

Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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 T898. The following data were recorded for this job:

-The amount of overhead applied in the Customizing Department to Job T898 is closest to:

A) $450.00
B) $119,700.00
C) $665.00
D) $215.00