Opunui Corporation has two manufacturing departments--Molding and Finishing. 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 M. 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 M is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Opunui Corporation has two manufacturing departments--Molding and Finishing. 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 M. 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 M is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

To calculate the manufacturing overhead rate, we add up the total estimated manufacturing overhead costs for both departments, which is $336,000, and divide that by the total estimated machine-hours for both departments, which is 28,000. This gives us a predetermined overhead rate of $12 per machine-hour.

For Job M, we can calculate the total manufacturing cost by adding up the direct materials, direct labor, and overhead costs.

Direct materials: $6,250 + $3,100 = $9,350
Direct labor: $1,200 + $1,500 = $2,700
Overhead: We know that the job required 750 machine-hours, so we can multiply that by the predetermined overhead rate of $12 per machine-hour to get $9,000.

Total manufacturing cost for Job M: $9,350 + $2,700 + $9,000 = $21,050

Therefore, the closest option is C) $32,130.

Opunui Corporation Has Two Manufacturing Departments--Molding and Finishing