Heroux Corporation has two manufacturing departments--Forming and Customizing. 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 A and Job H. 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 A is closest to:
A) $14,400
B) $15,120
C) $28,512
D) $29,520

Question

Heroux Corporation has two manufacturing departments--Forming and Customizing. 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 A and Job H. 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 A is closest to:
A) $14,400 
B) $15,120 
C) $28,512 
D) $29,520

Quizplus · Accepted Answer

Forming Department predetermined overhead rate:
 11ea7761_1955_ae59_81a5_4f6a639584d9_TB2580_00 Customizing Department predetermined overhead rate:
 11ea7761_1955_d56a_81a5_b9933da675f1_TB2580_00 Manufacturing overhead applied to Job A:
 11ea7761_1955_d56b_81a5_9f4ab9942642_TB2580_00

Heroux Corporation Has Two Manufacturing Departments--Forming and Customizing