Tinkle-Tinkle Glass Company makes glass globe paper weights for desks. The company uses a job-order cost system and predetermined overhead rates apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Fabrication Department is based on machine hours, and the rate in the Finishing Department is based on direct labor hours. At the beginning of the year, the company's management made the following estimates for the year:

Job 25 (the Christmas holiday special) was started on July 1 and completed on August 15. The company's cost records show the following concerning the job:

Required:

Compute the predetermined overhead rate used during the year in the Fabrication Department. Do the same for the Finishing Department. Compute the total overhead cost applied to job 25.

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Department Machine hours Direct labor hours Direct material cost Direct labor cost Fixed manufacturing overhead cost Fabrication Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor hour 60,000 22,000 $300,000 $215,000 $475,000 $1.50 Finishing 20,000 32,000 $150,000 $500,000 $200,000 --- $1.35 Department Fabrication 250 75 Machine hours Direct labor hours Direct materials cost $975 Direct labor cost $650 Finishing 50 100 $750 $825 Department Machine hours Direct labor hours Direct material cost Direct labor cost Fixed manufacturing overhead cost Fabrication Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor hour 60,000 22,000 $300,000 $215,000 $475,000 $1.50 Finishing 20,000 32,000 $150,000 $500,000 $200,000 --- $1.35 Department Fabrication 250 75 Machine hours Direct labor hours Direct materials cost $975 Direct labor cost $650 Finishing 50 100 $750 $825

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