John Sheng, a cost accountant at Starlet Company, is developing departmental factory overhead application rates for the company’s Tooling and Fabricating departments. The budgeted overhead for each department and the data for one job are as follows:

Using the departmental overhead application rates, total overhead applied to Job 231 in the Tooling and Fabricating departments will be:

a. $225.

b. $303.

c. $537.

d. $671

Transcribed Image Text:

Departments Fabricating Tooling $ 850 $ 200 Supplies Supervisors' salaries 1,500 2,000 Indirect labor 1,200 4,880 5,500 Depreciation 1,000 Repairs 4,075 3,540 $8,625 Total budgeted overhead $16,120 Total direct labor hours 460 620 Direct labor hours on Job 231 12 3