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 Estimated total machine-hours (MHS) 6,500 Estimated total fixed manufacturing overhead cost $ 20,000 Estimated variable manufacturing overhead cost per $ 2.50 MH Finishing 3,500 $5,000 $ 5.00 Tota 10,000 $25,000 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 Finishing machine-hours Job A $ 16,800 $23,500 2,500 2,500 Job M $10,100 $10,400 4,000 1,000 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 0 $29.400 O $10,100 0 $49,900

Answer 1

	Molding	Fabrication	Total
Estimated total machine hours (MHs)	6500	3500	10000
(*) Estimated variable manufacturing overhead per MH	2.50	5.00
Estimated total variable manufacturing overhead	16250	17500	33750
Estimated total fixed manufacturing overhead	20000	5000	25000
Estimated total manufacturing overhead	36250	22500	58750

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 58750 / 10000

5.88

per MH

	Job M
Total actual machine hours used [ 4000 + 1000 ]	5000
Plantwide predetermined overhead rate	5.88
Manufacturing overhead applied	29400

Answer : $29,400