Question

Opunui 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: Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Molding 4,000 $ 25,000 $ 1.00 Finishing 1,000 $ 3,700 $ 2.00 Total 5,000 $ 28,700 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 $15,100 $22,000 2,700 400 Job M $8,800 $9,000 1,300 600 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.)

Answer 1

Predetermined overhead rate for modeling = 25000/4000 = $6.25 per hour

Predetermined overhead rate for Finishing = 3700/1000 = $3.7 per hour

	Job M
Direct material	$8800
Direct labor	9000
Fixed manufacturing overhead (6.25*1300 + 3.7*600)	10345
Variable manufacturing overhead (1300*1 + 600*2)	2500
Total manufacturing cost	$30645

Answer 2

Predetermined   OH Rate = Total estimated fixed Manufacturing OH / Total estimated machine   hours
Estimated fixed manuf. OH	28,700
Add: Variable OH-Molding	4,000	(1*4000)
Add: Variable OH-Fabricating	2,000	(2*1000)
Total Overhead cost	34,700
Divided by estimated Total Machine hours	5,000
Predetermined OH Rate	6.94
Manufacturing overhead applied to Job A   and Job M
	Job M
Machine hours actually used	1,900
Multiplied by Plantwide OH   Rate	6.94
Total Overhead apply to Jobs	13,186
Total amount of manufacturing cost   assigned to Job M
Direct Material	8,800
Direct Labour	9,000
Overhead applied	13,186
Total amount of manufacturing   cost assigned to Job M	30,986

CORRECT (C)

c:30986