Tomey 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 T617. The following data were recorded for this job:
The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $5,604
B) $2,584
C) $684
D) $3,020

Question

Tomey 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 T617. The following data were recorded for this job:
 The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $5,604 
B) $2,584 
C) $684 
D) $3,020

Quizplus · Accepted Answer

The Answer of Tomey 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 T617. The following data were recorded for this job:
 The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $5,604 
B) $2,584 
C) $684 
D) $3,020

Tomey Corporation Has Two Production Departments, Forming and Finishing