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Mundorf Corporation has two manufacturing departments--Forming and Assembly. The company used the ...

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Mundorf Corporation has two manufacturing departments--Forming and Assembly. The company used the ...

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	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 plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job B is closest to:

▸ $48,555

▸ $35,490

▸ $2,988

▸ $45,567

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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