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 | $ 29,000 | $ 4,000 | $ 33,000 |
| Estimated variable manufacturing overhead cost per MH | $ 2.50 | $ 5.00 |
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 | $ 15,500 | $ 9,100 |
| Direct labor cost | $ 22,300 | $ 9,300 |
| 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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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
