Question

Halbur Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Machining		Customizing		Total
Estimated total machine-hours (MHs)		6,000		4,000		10,000
Estimated total fixed manufacturing overhead cost	$	33,600	$	10,000	$	43,600
Estimated variable manufacturing overhead cost per MH	$	1.80	$	2.80

During the most recent month, the company started and completed two jobs--Job C and Job J. There were no beginning inventories. Data concerning those two jobs follow:

	Job C		Job J
Direct materials	$	11,300	$	8,100
Direct labor cost	$	18,500	$	6,300
Machining machine-hours		4,100		1,900
Customizing machine-hours		1,600		2,400

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job C is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice:

$67,192

$18,500

$37,392

$11,300

Answer 1

Plantwide overhead rate = (6000*1.8+4000*2.8+43600)/10000 = 6.56 per hour

Total manufacturing cost of Job C

	Job C
Direct material	11300
Direct labor	18500
Overhead (5700*6.56)	37392
Total manufacturing cost	67192

So answer is a) $67192