Help Seve Exit Opunui Corporation has two manufacturing depa

Help Seve& Exit 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 5,000 Estimated total machine-hours (MBs) Estinated total fixed nanufacturing overhead cost $12,000 4,100 16,100 Estinated variable sanufacturing overhead cost per MH 3.00 6.00 ,000 1, 000 obs Job A and·ob M There were no begining men ores Dat During the most recent month, the company started and completed two concerning those two jobs follow Direct nateriala Direct labor coat Molding machine-hours Finishing machine-hours $15,700 9,200 $22,500 9.400 2,700 1,300 600 100 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 intermediste calculations to 2 decimal places) 9 L. pause

Solution

Answer:

Spet-1

Molding

Estimated fixed manufacturing overhead

12000

Estimated variable manufacturing overhead
($3 per MH × 4,000 MHs)

12000

Estimated total manufacturing overhead cost

24000

Finishing

Estimated fixed manufacturing overhead

4100

Estimated variable manufacturing overhead
($6 per MH × 1,000 MHs)  

6000

Estimated total manufacturing overhead cost

10100

Step-2

The second step is to combine the estimated manufacturing overhead costs in the two departments ($24,000 + $10,100 = $34,100) to calculate the plant wide predetermined overhead rate as follow:

Estimated total manufacturing overhead cost $ 34,100    

Estimated total machine hours   5,000 MHs  

Predetermined overhead rate $ 6.82 per MH  

The overhead applied to Job M is calculated as follows:

Overhead applied to a particular job

= Predetermined overhead rate x Machine-hours incurred by the job

= $6.82 per MH x (1,300 MHs + 600 MHs)

= $6.82 per MH x (1,900 MHs)

= $12,958

Job M’s manufacturing cost:

Direct materials

9200

Direct labor cost

9400

Manufacturing overhead applied

12958

Total manufacturing cost

31558

Job M’s manufacturing cost:$31,558

Molding
Estimated fixed manufacturing overhead	12000
Estimated variable manufacturing overhead ($3 per MH × 4,000 MHs)	12000
Estimated total manufacturing overhead cost	24000