Merati 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:
During the most recent month, the company started and completed two jobs--Job B and Job L. 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 B is closest to:
A) $9,400
B) $25,160
C) $32,670
D) $34,560

Question

Merati 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:
  During the most recent month, the company started and completed two jobs--Job B and Job L. 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 B is closest to:
A) $9,400 
B) $25,160 
C) $32,670 
D) $34,560

Quizplus · Accepted Answer

Forming Department predetermined overhead rate:
 11ea7761_195a_906e_81a5_9ff6e1efaec4_TB2580_00 Assembly Department predetermined overhead rate:
 11ea7761_195a_906f_81a5_0db939ca9941_TB2580_00 Manufacturing overhead applied to Job B:
 11ea7761_195a_b780_81a5_9bd8f9f75407_TB2580_00

Merati Corporation Has Two Manufacturing Departments--Forming and Assembly