Question
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
| Molding | Finishing | Total | ||||
| Estimated total machine-hours (MHs) | 3,250 | 1,750 | 5,000 | |||
| Estimated total fixed manufacturing overhead cost | $ | 25,000 | $ | 4,800 | $ | 29,800 |
| Estimated variable manufacturing overhead cost per MH | $ | 1.50 | $ | 3.00 | ||
During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:
| Job A | Job M | |||
| Direct materials | $ | 16,500 | $ | 9,800 |
| Direct labor cost | $ | 23,200 | $ | 10,200 |
| Molding machine-hours | 1,250 | 2,000 | ||
| Finishing machine-hours | 1,250 | 500 | ||
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to:
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The Four Corners Of Financial Accounting
Authors: Shaho Heidari Gandoman
1st Edition
1952751950, 978-1952751950
