Chapter 16, Problem 2CMA

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:

1. a. $225.
2. b. $303.
3. c. $537.
4. d. $671.