Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job A is closest to:

A) $28,512
B) $16,632
C) $11,880
D) $17,664

Question

Ramen Abraham · Accepted Answer

Final Answer : A, Explanation :  The first step is to calculate the estimated total overhead costs in the two departments.Forming   Customizing   The second step is to combine the estimated manufacturing overhead costs in the two departments ($21,600 + $37,800 = $59,400)to calculate the plantwide predetermined overhead rate as follow:   The overhead applied to Job A is calculated as follows:Overhead applied to a particular job = Predetermined overhead rate x Machine-hours incurred by the job= $5.94 per MH x (2,000 MHs + 2,800 MHs)= $5.94 per MH x (4,800 MHs)= $28,512

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job A is closest to:

A) $28,512
B) $16,632
C) $11,880
D) $17,664

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Learning Objectives

Related questions

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job A is closest to:A) $28,512B) $16,632C) $11,880D) $17,664

Definitions

Learning Objectives

Learning Objectives

Related questions

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job A is closest to:

A) $28,512
B) $16,632
C) $11,880
D) $17,664