Hickingbottom Corporation Has Two Production Departments, Forming and Finishing

Multiple Choice

Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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 M381. The following data were recorded for this job:

-The total job cost for Job M381 is closest to:

A) $2,206
B) $616
C) $4,076
D) $1,870