Biology Forums - Study Force

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

	Casting	Finishing	Total
Estimated total machine-hours (MHs)	1,000	4,000	5,000
Estimated total fixed manufacturing overhead cost	$ 4,800	$ 8,800	$ 13,600
Estimated variable manufacturing overhead cost per MH	$ 1.80	$ 2.90

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

	Job F	Job M
Direct materials	$ 11,500	$ 9,000
Direct labor cost	$ 18,400	$ 7,400
Casting machine-hours	700	300
Finishing machine-hours	1,600	2,400

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 F is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $4,620

▸ $12,780

▸ $12,420

▸ $8,160

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