Reference no: EM132823021

Question - Stoke 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:

Forming Assembly

Machine-hours 20,000 15,000

Direct labor-hours 2,000 7,000

Total fixed manufacturing overhead cost $138,000 $58,100

Variable manufacturing overhead per machine-hour $2.30

Variable manufacturing overhead per direct labor-hour $3.00

During the current month the company started and finished Job A460. The following data were recorded for this job:

Job A460: Forming Assembly

Machine-hours 80 10

Direct labor-hours 30 50

What the amount of overhead applied in the Forming Department to Job A460?

A) $184,000.00

B) $184.00

C) $736.00

D) $664.00