Ronson Corporation has two manufacturing departments--Casting 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 C 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 C is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Ronson Corporation has two manufacturing departments--Casting 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 C 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 C 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.
Casting
 11eacbfc_c71d_893b_8ffe_9b0791620b54_TB7552_00 Customizing
 11eacbfc_c71d_b04c_8ffe_397108d3b4bc_TB7552_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($36,000 + $23,500 = $59,500) to calculate the plantwide predetermined overhead rate as follow:
 11eacbfc_c71d_b04d_8ffe_e7fbc65dd04d_TB7552_00 The overhead applied to Job C is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job
= $5.95 per MH × (3,400 MHs + 2,000 MHs)
= $5.95 per MH × (5,400 MHs)
= $32,130

Ronson Corporation Has Two Manufacturing Departments--Casting and Customizing