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Please answer corrrectly 14 Adams Corporation has two production system and allocates manufacturing overhead (MOH) cost machine-hours (MHs). ion departments, Forming and Finishing. The company
Please answer corrrectly 14 Adams Corporation has two production system and allocates manufacturing overhead (MOH) cost machine-hours (MHs). ion departments, Forming and Finishing. The company uses a job-order costing using a plant-wide predetermined rate (POHR) based on At the beginning of the current year, the company made the following estimates Total Machine hours Total fixed MOH Total variable MOH 6,000 4,00010,000 MHs S 42,000 S 11,200 S 53,200 S 12,000 $ 9,600 S 21,600 During the most recent month, Adams started and completed two jobs-Job E and Job L. There were no beginning inventories. Data concerning those two jobs follow: Forming Finishing MHs 160 240 DM DL cost Job E Job L S 1,340 S 2,450 910 S 700 MHs 410 190 A new 20 Switching to the departmental POHRs will: A. keep the costs of Job E and Job L the same. B. increase the cost of Job E by $258.40 C. decrease the cost of Job E by $258.40 D. increase the cost of Job E by $216.60, E decrease the cost of Job E by $216.60
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