Question

# Sanderlin Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...

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

 Machining Finishing Total Estimated total machine-hours (MHs) 5,000 5,000 10,000 Estimated total fixed manufacturing overhead cost \$ 26,500 \$ 13,500 \$ 40,000 Estimated variable manufacturing overhead cost per MH \$ 2.00 \$ 3.00

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

 Job C Job L Direct materials \$ 12,500 \$ 8,200 Direct labor cost \$ 20,200 \$ 6,400 Machining machine-hours 3,400 1,600 Finishing machine-hours 2,000 3,000

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job L is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28, 2017-08-01

Multiple Choice

\$29,900

\$11,680

\$28,780

\$17,100

The explanation is as follows:

 Overhead rate for both the department: Fixed rate for machining: \$ 26500 /5,000 = \$ 5.30 per hour Fixed Finishing rate: \$ 13500 /5,000 = \$ 2.70 per hour Total rate for machining : \$ 2.00+5.30 = \$7.30 per hour Total rate for Finishing: \$ 3.00 + 2.70 = \$ 5.70 per hour Overheads applied to Job l: Machining overheads (1600 hours@ 7.30) 11680 Finishing (3,000 hours@\$5.70) 17100 Total overhead applied to Job L 28780

#### Earn Coins

Coins can be redeemed for fabulous gifts.