Question

Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the...

Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

Forming Customizing Total
Estimated total machine-hours (MHs) 3,000 7,000 10,000
Estimated total fixed manufacturing overhead cost $ 16,500 $ 20,300 $ 36,800
Estimated variable manufacturing overhead cost per MH $ 1.70 $ 2.50

During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:

Job A Job H
Direct materials $ 12,800 $ 6,700
Direct labor cost $ 24,300 $ 7,800
Forming machine-hours 2,000 1,000
Customizing machine-hours 2,800 4,200

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job H is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28

Multiple Choice

$30,888

$24,948

$19,136

$5,940

Homework Answers

Answer #1
Manufacturing overhead Forming 21600 =16500+(3000*1.7)
Manufacturing overhead Customizing 37800 =20300+(7000*2.5)
Total Manufacturing overhead 59400
Divide by Estimated total machine-hours 10000
Plantwide predetermined manufacturing overhead rate 5.94
Job H
Total machine hours 5200 =1000+4200
X Predetermined manufacturing overhead rate 5.94
Amount of manufacturing overhead applied 30888
Option A 30,888 is correct
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