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Assume a company started and completed numerous jobs during Julytwo of which were Job Y and Job Z. The company uses two departmental predetermined overhead

Assume a company started and completed numerous jobs during Julytwo 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 38

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?

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