Question: Chester Company provided information on overhead for its three producing departments as follows: Overhead is applied on the basis of machine hours in Fabricating and

Chester Company provided information on overhead for its three producing departments as follows:

Overhead is applied on the basis of machine hours in Fabricating and direct labor hours in Assembly and in Finishing.
Job #13-198 had total prime cost of $6,700. The job took 40 machine hours in Fabricating, 100 direct labor hours in Assembly, and 20 direct labor hours in Finishing. What is the total cost of Job #13-198?
a. $6,700.00
b. $1,523.20
c. $8,223.20
d. $7,383.20

Fabricating Assembly Finishing Budgeted overhead Budgeted machine hours Budgeted direct labor hours $140,000 20,000 5,000 $64,000 $74,880 20,000 18,000

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