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Bear Claw Industries Uses a Job-Order Costing System The Following Information Was Available for Job No

Question 71

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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:  Manufacturing overhead cost  Molding  Assembly  Machine hours $700,000$400,000 Direct labor hours 10,0004,00012,00016,000\begin{array} { l c c } \text { Manufacturing overhead cost } & \text { Molding } & \text { Assembly }\\\text { Machine hours } & \$ 700,000 & \$ 400,000 \\\text { Direct labor hours } & 10,000 & 4,000 \\& 12,000 & 16,000\end{array}
The following information was available for Job No. 7-29, which was started and completed during August:  Job No. 729 Molding  Assembly  Direct materials $3,500$7,500 Direct labor $9,000$12,500 Direct labor hours 9001,250 Machine hours 500400\begin{array}{lcc}&\text { Job No. } 7-29\\&\text { Molding } & \text { Assembly }\\\text { Direct materials } & \$ 3,500 & \$ 7,500 \\\text { Direct labor } & \$ 9,000 & \$ 12,500 \\\text { Direct labor hours } & 900 & 1,250 \\\text { Machine hours } & 500 & 400\end{array}
The predetermined overhead rate for the molding department is


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

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