Bear Claw Industries Uses a Job-Order Costing System

Multiple Choice

Bear Claw Industries uses a job-order costing system. The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead based on direct labor hours. The company made the following estimates at the beginning of the current year: The following information was available for Job No. 7-29, which was started and completed during August:
The predetermined overhead rate for the molding department is

A) $100.
B) $83.
C) $70.
D) $50.