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 H is closest to:
A) $22,680
B) $30,888
C) $29,880
D) $7,200

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 H is closest to:
A) $22,680 
B) $30,888 
C) $29,880 
D) $7,200

Quizplus · Accepted Answer

Forming Department predetermined overhead rate:
 11ea7761_1955_fc7c_81a5_47d408e02ed8_TB2580_00 Customizing Department predetermined overhead rate:
 11ea7761_1955_fc7d_81a5_d79392f7be2e_TB2580_00 Manufacturing overhead applied to Job H:
 11ea7761_1956_238e_81a5_5f7951f96c82_TB2580_00

Heroux Corporation Has Two Manufacturing Departments--Forming and Customizing