Question
Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Forming | Customizing | Total | ||||
Estimated total machine-hours (MHs) | 3,000 | 7,000 | 10,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 16,500 | $ | 20,300 | $ | 36,800 |
Estimated variable manufacturing overhead cost per MH | $ | 1.70 | $ | 2.50 | ||
During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:
Job A | Job H | |||
Direct materials | $ | 12,800 | $ | 6,700 |
Direct labor cost | $ | 24,300 | $ | 7,800 |
Forming machine-hours | 2,000 | 1,000 | ||
Customizing machine-hours | 2,800 | 4,200 | ||
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job H is closest to: (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-06-28
Multiple Choice
$30,888
$24,948
$19,136
$5,940
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