Question
Marioni Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Marioni Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Forming | Assembly | Total | ||||
Estimated total machine-hours (MHs) | 7,000 | 3,000 | 10,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 37,100 | $ | 9,000 | $ | 46,100 |
Estimated variable manufacturing overhead cost per MH | $ | 1.70 | $ | 2.60 | ||
During the most recent month, the company started and completed two jobs--Job B and Job H. There were no beginning inventories. Data concerning those two jobs follow:
Job B | Job H | ||
Forming machine-hours | 4,800 | 2,200 | |
Assembly machine-hours | 1,200 | 1,800 | |
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job B is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $33,600
B) $39,480
C) $6,720
D) $40,320
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