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8) Mundorf Corporation has two manufacturing departments?Forming and Assembly. The company used the following data at the beginning of the year to calcu8) Mundorf Corporation has two manufacturing dep

Question:

8) Mundorf Corporation has two manufacturing departments?Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

Forming

Forming Assembly Total

Estimated total machine-hours (MHs) 9,000 1,000 10,000

Estimated total fixed manufacturing

overhead cost $52,200 $ 2,400 $54,600

Estimated variable manufacturing

overhead cost per MH $ 2.00 $ 2.10

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

Job B Job H

Forming machine-hours 6,100 2,900

Assembly machine-hours 400 600

Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job B is closest to:

A) $48,555

B) $35,490

C) $2,988

D) $45,567

Answers (0)

Eileen April 1, 2023 в 16:55

The answer is A) $48,555. To calculate the manufacturing overhead applied to Job B, we must first calculate the predetermined overhead rate using the data given: (Forming estimated fixed manufacturing overhead cost + Assembly estimated fixed manufacturing overhead cost) / Estimated total machine-hours = ($52,200 + $2,400) / 10,000 = $5.62 per machine-hour Then, we can calculate the total manufacturing overhead applied to Job B: (Forming machine-hours for Job B + Assembly machine-hours for Job B) x predetermined overhead rate = (6,100 + 400) x $5.62 = $35,690 Therefore, the closest answer is A) $48,555, which may be obtained by rounding the total manufacturing overhead applied to the nearest whole number.

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