Question

Opunui Corporation has two manufacturing departments --Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermine overhead rates: 2. - Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead ADD up cost Molding Finishing Total 6500 3500 10,000 S 14,000 $ 4200 $ 18,200 Estimated variable manufacturing overhead cost per MH $ 1.00 $ 2.00 uring 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 Finishing machine-hours Job A Job M $ 15,800 $ 9300 $ 22,600 $ 9500 2500 4000 2500 1000 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 your intermediate calculations to 2 decimal places.) A. $34,650 B. $15,850 C. $9300 D. $9500

Answer 1

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Opunui Corporation
Total Variable OH	Molding	Finishing	Total	Note
Total Machine Hours	6,500.00	3,500.00	10,000.00	A
Variable OH rate	1.00	2.00		B
Total Variable OH	6,500.00	7,000.00	13,500.00	C=A*B
Add: Fixed overhead			18,200.00	D
Total Manufacturing overhead			31,700.00	E=C+D
Plant wide Manufacturing overhead rate			3.17	F=E/A
OH allocated to Job M	Molding	Finishing	Total
Molding	4,000.00	1,000.00	5,000.00	G
Fixed OH rate			3.17	See F
OH allocated			15,850.00	H=G*F
Total manufacturing cost	Job M
Direct Materials	9,300.00
Direct Labor	9,500.00
OH allocated	15,850.00			See H
Total manufacturing cost	34,650.00
So answer is option A $ 34,650.