Biology Forums - Study Force

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

	Casting	Customizing	Total
Estimated total machine-hours (MHs)	5,000	5,000	10,000
Estimated total fixed manufacturing overhead cost	$ 27,500	$ 10,500	$ 38,000
Estimated variable manufacturing overhead cost per MH	$ 1.70	$ 2.60

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

	Job C	Job G
Direct materials	$ 10,600	$ 6,800
Direct labor cost	$ 23,700	$ 7,900
Casting machine-hours	3,400	1,600
Customizing machine-hours	2,000	3,000

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

▸ $42,070

▸ $27,370

▸ $6,800

▸ $7,900

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