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 L is closest to:
A) $27,830
B) $11,840
C) $25,940
D) $14,100

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 L is closest to:
A) $27,830 
B) $11,840 
C) $25,940 
D) $14,100

Quizplus · Accepted Answer

Forming Department predetermined overhead rate:
 11ea7761_195b_05a1_81a5_a9ce36966900_TB2580_00 Assembly Department predetermined overhead rate:
 11ea7761_195b_05a2_81a5_9909863e7957_TB2580_00 Manufacturing overhead applied to Job L:
 11ea7761_195b_2cb3_81a5_c16f98109301_TB2580_00

Merati Corporation Has Two Manufacturing Departments--Forming and Assembly