Morataya Corporation has two manufacturing departments--Machining 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 G. There were no beginning inventories. Data concerning those two jobs follow:
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job G is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Morataya Corporation has two manufacturing departments--Machining 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 G. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job G 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_c70a_eb2a_8ffe_6b8e880064e7_TB7552_00 Assembly
 11eacbfc_c70a_eb2b_8ffe_65134f4dc353_TB7552_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($52,500 + $12,900 = $65,400) to calculate the plantwide predetermined overhead rate as follow:
 11eacbfc_c70a_eb2c_8ffe_7dc9cbf0636a_TB7552_00 The overhead applied to Job G is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job
= $6.54 per MH × (2,200 MHs + 1,800 MHs)
= $6.54 per MH × (4,000 MHs)
= $26,160

Morataya Corporation Has Two Manufacturing Departments--Machining and Assembly