Macnamara Corporation has two manufacturing departments--Casting and Finishing.

Question

Macnamara Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Casting 1,000 Total 5,000 $ 13,600 Finishing Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost 4,800 Estimated variable manufacturing overhead cost per ? 1.80 MH 4, 000 $ 8,800 $ 2.90 During the most recent month, the company started and completed two jobs--Job F and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job M $11,500 9,000 $7,400 300 Job F Direct materials Direct labor cost $18,400 Casting machine- hours Finishing machine- hourS 700 2,400 1,600 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments The manufacturing overhead applied to Job F is closest to: (Round your intermediate calculations to 2 decimal places.)

Explanation / Answer

Casting overhead rate = (4800/1000)+1.80 = 6.60 per machine hour

Finishing overhead rate = (8800/4000)+2.90 = 5.10 Per machine hour

Manufacturing overhead applied to Job F = (700*6.6+1600*5.10) = $12780

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