Boward Corporation Has Two Production Departments, Milling and Assembly

Multiple Choice

Boward Corporation has two production departments, Milling and Assembly.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 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 T818.The following data were recorded for this job: The total amount of overhead applied in both departments to Job T818 is closest to:

A) $1,651
B) $608
C) $435
D) $1,043