Heroux Corporation has two manufacturing departments--Forming 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 A and Job H. 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 A is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Heroux Corporation has two manufacturing departments--Forming 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 A and Job H. 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 A 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.
Forming
 11eacbfc_c73a_38c3_8ffe_354119f44421_TB7552_00 Customizing
 11eacbfc_c73a_38c4_8ffe_6b3255423a3d_TB7552_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($21,600 + $37,800 = $59,400) to calculate the plantwide predetermined overhead rate as follow:
 11eacbfc_c73a_38c5_8ffe_4f42522ee567_TB7552_00 The overhead applied to Job A is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job
= $5.94 per MH × (2,000 MHs + 2,800 MHs)
= $5.94 per MH × (4,800 MHs)
= $28,512

Heroux Corporation Has Two Manufacturing Departments--Forming and Customizing