Question
Bullock Corporation has two manufacturing departments, Forming and Assembly, and used the following data at the beginning of the year to calculate predetermined overhead rates:
Bullock Corporation has two manufacturing departments, Forming and Assembly, and used the following data at the beginning of the year to calculate predetermined overhead rates:
Forming Assembly
Estimated total machine-hours (MHs) 5,000 5,000
Estimated total fixed manufacturing overhead cost $28,000 $10,500
Estimated variable manufacturing overhead cost per MH $1.80 $2.60
During the most recent month, the company started and completed two jobs--Job A and Job B. There were no beginning inventories. Data concerning those two jobs is as follows:
Job A Job B
Forming machine-hours 3,400 1,600
Assembly machine-hours 2,000 3,000
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What was the manufacturing overhead applied to Job B?
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