Question

Halbur Corporation has two manufocturing departments--Machining and Customizing. The company used the following doto at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 6,000 $ 33,608 $1.88 4,000 $ 10,000 $2.80 10,000 $ 43,600 During the most recent month, the company started and completed two jobs Job C and Job J There were no beginnin mentones Datฮ concerning those two Jobs follow: Direct materials Direct labor cost Machining machine-hours Customizing machine-hours $11,308 $8,100 $18,508 $6,300 1,980 2,480 4,100 1,688 Assumie าย the company uses 8 p ar t decimal places.) cte predetermined manufacturire overheo rate based on machine-hours Ther mount o monufacturin overheec applied to ot) is closest to ound your intermediate calculations to 2 Multiple Choice 28.208 $18748 $12464 $15.744

Answer 1

As the company uses plant wide predetermined manufacturing overhead rate based on machine hours:

= (Total fixed manufacturing overheads + Total variable manufacturing overheads) / Total machine hours.

=43600 + (6000*1.8) + (4000*2.8) / 10000.

$6.56 per machine hours

Therefore, the total manufacturing overhead applied to job J is as follows:

= Total machine hours in job J * predetermined manufacturing overhead rate based on machine hour.

= (Machining + customizing ) machine hours * $6.56

= (1900+2400) * $6.56

= 4300 * $6.56

= $28,208.

Therefore, the correct option is A i.e ($28,208).