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 total manufacturing cost assigned to Job C is closest to:
A) $18,500
B) $67,192
C) $11,300
D) $37,392

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 total manufacturing cost assigned to Job C is closest to:
A) $18,500 
B) $67,192 
C) $11,300 
D) $37,392

Quizplus · Accepted Answer

The plantwide predetermined overhead rate is applied based on machine-hours, and the total manufacturing cost includes direct materials, direct labor, and applied overhead. The given choice B is closest to the calculated total cost using these components.

Halbur Corporation Has Two Manufacturing Departments--Machining and Customizing