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 mangement made he following estimates for the year:
Department
Fabrication Finishing
Machine hours 60,000 20,000
Direct labor hours 22,000 32,000
Direct material cost $300,000 $150,000
Direct labor cost $215,000 $500,000
Fixed manufacturing overhead cost $475,000 $200,000
Variable manufacturing overhead per machine hour $1.50 ---
Variable manufacturing overhead per direct labor hour --- $1.35
Job 25 (the Christmas holiday special) was sarted on July 1 and completed on August 15. The company's cost records show the following concerning the job:
Department
Fabrication Finishing
Machine hours 250 50
Direct labor hours 75 100
Direct materials cost $975 $750
Direct labor cost $650 $825
Question
Compute the predetermined overhead rate used during the year in the Fabrication Department. Do the same for the Finishing Departmnt. Compute the total overhead cost applied to job 25.
Please show work