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:

1. 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.
2. 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.
3. 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?
4. 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?