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 total manufacturing cost assigned to Job G 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 total manufacturing cost assigned 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.
Casting
 11eacbfc_c71e_2580_8ffe_f336f80bd4fe_TB7552_00 Customizing
 11eacbfc_c71e_2581_8ffe_8f47b9cd3cf6_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_c71e_2582_8ffe_1f2d4f8da5a3_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
= $5.95 per MH × (1,600 MHs + 3,000 MHs)
= $5.95 per MH × (4,600 MHs)
= $27,370
Job G's manufacturing cost:
 11eacbfc_c71e_2583_8ffe_95dd28ed035b_TB7552_00

Ronson Corporation Has Two Manufacturing Departments--Casting and Customizing