Question

Assume a company started and completed numerous jobs during July—two of which were Job Y and Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: Machining Assembly Estimated total fixed manufacturing overhead $ 48,000 $ 30,000 Estimated variable manufacturing overhead per machine-hour $ 1.50 Estimated variable manufacturing overhead per direct labor-hour $ 2.00 Estimated total machine-hours to be used 12,000 Estimated total direct labor hours to be worked 10,000 Machining Assembly Job Y Machine-hours 51 Direct labor-hours 30 Job Z Machine-hours 40 Direct labor-hours 60 How much manufacturing overhead is applied from the Machining Department to Job Y? rev: 04_27_2020_QC_CS-208650, 06_10_2020_QC_CS-208650 Garrison 17e Rechecks 2020-06-22 Multiple Choice $200 $230 $281 $251 Next Visit question mapQuestion 14 of 15 Total 14 of 15 Prev

Answer 1

Predetermined overhead rate in Machining Department	$ 5.5	Per Machine Hour	=(48000/12000)+1.5
Manufacturing overhead is applied from the Machining Department to Job Y	$ 281	=51*5.5
Correct answer is option 3 ( i.e. $ 281 ).