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:

	Molding		Finishing		Total
Estimated total machine-hours (MHs)		3,250		1,750		5,000
Estimated total fixed manufacturing overhead cost	$	28,000	$	5,200	$	33,200
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	$	16,900	$	10,300
Direct labor cost	$	23,600	$	10,600
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 your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28, 2017-09-05, 2017-09-14

Multiple Choice

• $45,950

• $10,300

• $10,600

• $25,050

Answer 1

$45,950
	Job M
Direct materials	$10,300
Direct labor cost	$10,600
Overhead	$25,050
Total manufacturing cost	$45,950
	Molding	Finishing	Total
Estimated total fixed manufacturing overhead cost	$28,000	$5,200	$33,200
Estimated total variable manufacturing overhead cost	$8,125	$8,750	$16,875
Estimated total manufacturing overhead cost	$36,125	$13,950	$50,075
Estimated total machine-hours (MHs)	3,250	1,750	5,000
			10.02