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 | $ | 16,000 | $ | 3,200 | $ | 19,200 |
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 | $ | 14,500 | $ | 8,200 |
Direct labor cost | $ | 21,400 | $ | 8,200 |
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: (Round "Predetermined overhead rate" to 2 decimal places.)
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