Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 P131. The following data were recorded for this job:
The amount of overhead applied in the Assembly Department to Job P131 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $228.00
B) $558.00
C) $65,500.00
D) $786.00

Question

Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 P131. The following data were recorded for this job:
 The amount of overhead applied in the Assembly Department to Job P131 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $228.00 
B) $558.00 
C) $65,500.00 
D) $786.00

Quizplus · Accepted Answer

The Answer of Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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 P131. The following data were recorded for this job:
 The amount of overhead applied in the Assembly Department to Job P131 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $228.00 
B) $558.00 
C) $65,500.00 
D) $786.00

Tiff Corporation Has Two Production Departments, Casting and Assembly