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:
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:

-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:
A) $4,620
B) $12,780
C) $12,420
D) $8,160

Question

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:
  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:
 
-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:
A) $4,620 
B) $12,780 
C) $12,420 
D) $8,160

Quizplus · Accepted Answer

Casting Department predetermined overhead rate:
 11ea7761_194c_383a_81a5_5b142be91074_TB2580_00 Finishing Department predetermined overhead rate:
 11ea7761_194c_383b_81a5_93eb18d88ad6_TB2580_00 Manufacturing overhead applied to Job F:
 11ea7761_194c_383c_81a5_0f4744f9b68b_TB2580_00

Macnamara Corporation Has Two Manufacturing Departments--Casting and Finishing