Atteberry Corporation has two manufacturing departments--Machining 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 E and Job L. There were no beginning inventories. Data concerning those two jobs follow:
Assume that the company uses a plantwide predetermined manufacturing overhead rate ased on machine-hours. The total manufacturing cost assigned to Job E is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Atteberry Corporation has two manufacturing departments--Machining 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 E and Job L. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses a plantwide predetermined manufacturing overhead rate ased on machine-hours. The total manufacturing cost assigned to Job E is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

The first step is to calculate the estimated total overhead costs in the two departments.
Machining
 11eacbfc_c6fc_ba03_8ffe_77cf9fc1aee8_TB7552_00 Finishing
 11eacbfc_c6fc_e114_8ffe_8d91c428a736_TB7552_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($42,000 + $20,800 = $62,800) to calculate the plantwide predetermined overhead rate as follow:
 11eacbfc_c6fc_e115_8ffe_c39d022ceceb_TB7552_00 The overhead applied to Job E is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job
= $6.28 per MH × (4,100 MHs + 1,600 MHs)
= $6.28 per MH × (5,700 MHs)
= $35,796
Job E's manufacturing cost:
 11eacbfc_c6fd_0826_8ffe_258ac767cac2_TB7552_00

Atteberry Corporation Has Two Manufacturing Departments--Machining and Finishing