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RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The

RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018:

Fabrication Assembly
Estimated Total Labor-Hours Used 20 50
Estimated Total Machine-Hours Used 30 15
Estimated Total Fixed Manufacturing Overhead $6,000 $7,000
Estimated Variable Manufacturing Overhead Per Labor-Hour $20 per Labor-Hour
Estimated Variable Manufacturing Overhead Per Machine-Hour $15 per Machine-Hour
Job A Job B
Direct Materials $22,500 $24,500
Direct Labor Cost $2,500 $4,000
Actual Labor-Hours Used
Fabrication 9 13
Assembly 23 28
Machine-Hours Used
Fabrication 13 18
Assembly 6 8

Assume RevampScamp uses departmental predetermined overhead rates with machine-hours for Fabrication and direct labor-hours for Assembly. What was the total manufacturing overhead applied to Job A?

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Multiple Choice $7,775 $5,615 $6,475 $13,988

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