Halbur Corporation has two manufacturing departments--Machining 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 J. 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 J is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Halbur Corporation has two manufacturing departments--Machining 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 J. 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 J 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_c726_6223_8ffe_95d15393faad_TB7552_00 Customizing
 11eacbfc_c726_8934_8ffe_af8f582c882f_TB7552_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($44,400 + $21,200 = $65,600) to calculate the plantwide predetermined overhead rate as follow:
 11eacbfc_c726_8935_8ffe_1321c6a56e0e_TB7552_00 The overhead applied to Job J is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job
= $6.56 per MH × (1,900 MHs + 2,400 MHs)
= $6.56 per MH × (4,300 MHs)
= $28,208

Halbur Corporation Has Two Manufacturing Departments--Machining and Customizing