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Ashe Corporation has two manufacturing departments--Machining and Customizing. The company used the ...

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Ashe Corporation has two manufacturing departments--Machining and Customizing. The company used the ...

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

	Machining	Customizing	Total
Estimated total machine-hours (MHs)	1,000	4,000	5,000
Estimated total fixed manufacturing overhead cost	$ 4,700	$ 9,200	$ 13,900
Estimated variable manufacturing overhead cost per MH	$ 1.10	$ 2.60

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

	Job B	Job K
Machining machine-hours	700	300
Customizing 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 K is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $11,760

▸ $1,740

▸ $13,716

▸ $13,500

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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