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Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing...

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Accounting

Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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:
\table[[,Forming,Assembly],[Machine-hours,20,000,15,000],[Direct labor-hours,2,000,7,000],[Total fixed manufacturing overhead cost,$138,000,$58,100
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