Question

Opunul Corporation has two manufacturing departments-Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding 6,500 $14,000 Finishing 3,500 $4,200 Total 10,000 $18,200 Estimated total machine-hours (MES) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per X $ 1.00 $ 2.00 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning Inventories. Data concerning those two jobs follow: Direct materials Direct labor cost Molding machine hours Tinishing machine Job $15,000 $22,600 2,500 Job M $9,300 $9,500 4,000 1,000 2,500 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to: (Round "Predetermined overhead rate" to 2 decimal places.) Multiple Choice O O $9.500 O $15,850 O $9.300 O $34,650

Answer 1

Calculation of Plantwide predetermined manufacturing overhead rate : Estimated total Fixed Manufacturing Overhead Cost = $18,200.00 Estimated Total Machine Hours = 10000 Predetermined Manufacturing Overhead Rate = $18,200/10,000 = $1.82 Calculation of total manufacturing cost assigned to Job M: Molding Machine Hrs 4000 Finishing Machine Hrs 1000 Total Machine Hrs 5000 Manufacturing Overhead Rate $1.82 $9,100.00 Fixed Manufacturing Overhead Cost assigned = Variable Manufacturing Overhead Cost Assigned (4000x$ 1)+(1000x$2) = Total Manufacturing Overhead Cost Assigned = $6,000.00 $15,100.00 So, Option 2 is Correct Answer.