Ahlheim Corporation Has Two Production Departments, Forming and Assembly

Multiple Choice

Ahlheim Corporation has two production departments, Forming and Assembly. 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 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 T924. The following data were recorded for this job:

-The total amount of overhead applied in both departments to Job T924 is closest to:

A) $1,157
B) $548
C) $609
D) $1,705