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Estrada Inc. has two manufacturing departments--Painting and Washing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Estrada Inc. has two manufacturing departments--Painting and Washing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Painting Washing Total Estimated total 8,000 2,000 10,000 machine-hours (MHS) Estimated total fixed $44,000 $4,200 $48,200 manufacturing overhead cost Estimated variable $1.90 $3.00 manufacturing overheard cost per MH During the most recent month, the company started and completed two jobs--Job Q and Job S. There were no beginning inventories. Data concerning those two jobs follow: Job Q Jobs Painting machine hours 5,400 2,600 Washing machine hours 800 1,200 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job S is closest to: $18,044 $26,372 $8,328 $18,316
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