Question

Morataya Corporation has two manufacturing departments --Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Assembly 7,000 3,000 Total 10,000 Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH $39,200 $6,600 $45,800 $ 1.90 $ 2.10 During the most recent month, the company started and completed two jobs-Job B and Job G. There were no beginning inventories. Data concerning those two jobs follow Direct materials Direct labor cost Machining machine-hours Assembly machine-hours Job B Job G $14,800 $8,300 $22,000 $8,900 4,800 2,200 1,200 1,800 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine- hours. The amount of manufacturing overhead applied to Job G is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 0 O $14,388 0 O $26,160 O $11,772 0 O $18,320

Answer 1

Step 1. Calculate the estimated total overhead costs in two departments Machining :- Estimated fixed manufacturing overhead = $39200 Estimated variable marvy actelding overhead - 13300 ($1.90 per MH X 7000 MHS) Estimated total manufacturing overhead cost = $ 52500 Assembly : - Estimated fixed manufacturing overhead = $6600 Estimated variable manufacturing overhead = 6300 (42.10 peoMH X3000 MHS) Estimated Total manufacturing overhead cost $12900 Step 2. Combine the estimated manufacturing over head costs 1 in the two depantoneats - $52500 + $ 12900 = $65400 step-3. Calculate predetermined bredhead rade Estimated to tal marufacturing overhead cost Estimated total machine hours - $65400 a $6.54 per MH 10000 MHS to Calculate overhead applied Tob G. step-4. 1 predetermined overhead rate & Machine - hours incurred by the job - $6.54 PUMHX ( 2200 MHS + 1800 MHS) - $6.54 per MHY (4000 MHS) - $26160 ans.