Chapter 2: Predetermined Overhead Rates

Sunburst Corporation has two manufacturing departmentsMolding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

		Molding	Customizing	Total
	Estimated total machine-hours (MHs)	1,000	9,000	10,000
	Estimated total fixed manufacturing overhead cost	$5,100	$23,400	$28,500
	Estimated variable manufacturing overhead cost per MH	$1.50	$2.50

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

		Job D	Job G
	Direct materials	$14,700	$9,100
	Direct labor cost	$18,800	$8,300
	Molding machine-hours	700	300
	Customizing machine-hours	3,600	5,400

Required:

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job D.

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job G.

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job D?

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job G?