Halbur Corporation has two manufacturing departments--Machining and Customizing.

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 amount of manufacturing overhead applied to Job J is closest to: (Round your intermediate calculations to 2 decimal places.)

Machining Customizing Total Estimated total machine-hours (MHs) 6,000 4,000 10,000 Estimated total fixed manufacturing overhead cost $ 33,600 $ 10,000 $ 43,600 Estimated variable manufacturing overhead cost per MH $ 1.80 $ 2.80

Explanation / Answer

Fixed manufacturing overhead per machine hour = 43600/10000 = 4.36

Variable manufacturing overhead per machine hour = 2.8

Total manufacturing overhead per machine hour = 4.36+2.8= 7.16

Machine hours used in job J = 1900

Manufacturing overhead applied = 1900 * 7.16 = 13,604

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