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Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the ...

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Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the ...

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

	Machining	Assembly	Total
Estimated total machine-hours (MHs)	7,000	3,000	10,000
Estimated total fixed manufacturing overhead cost	$ 39,200	$ 6,600	$ 45,800
Estimated variable manufacturing overhead cost per MH	$ 1.90	$ 2.10

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

	Job B	Job G
Direct materials	$ 14,800	$ 8,300
Direct labor cost	$ 22,000	$ 8,900
Machining machine-hours	4,800	2,200
Assembly machine-hours	1,200	1,800

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

▸ $4.00

▸ $7.50

▸ $4.58

▸ $6.54

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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