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Sanderlin Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

Machining Finishing Total
Estimated total machine-hours (MHs) 5,000 5,000 10,000
Estimated total fixed manufacturing overhead cost $ 26,500 $ 13,500 $ 40,000
Estimated variable manufacturing overhead cost per MH $ 2.00 $ 3.00
During the most recent month, the company started and completed two jobs--Job C and Job L. There were no beginning inventories. Data concerning those two jobs follow:

Job C Job L
Direct materials $ 12,500 $ 8,200
Direct labor cost $ 20,200 $ 6,400
Machining machine-hours 3,400 1,600
Finishing machine-hours 2,000 3,000
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 L is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28, 2017-08-01

A. $29,900

B. $11,680

C. $28,780

D. $17,100

Respuesta :

Answer:

Allocated overhead= $28,780

Explanation:

Giving the following information:

Machining Finishing Total

Estimated total machine-hours (MHs) 5,000 5,000

Estimated total fixed manufacturing overhead cost $26,500 $13,500

Estimated variable manufacturing overhead cost per MH $2 $3

Job L

Machining machine-hours 1,600

Finishing machine-hours 3,000

First, we need to calculate the predetermined overhead rate for each department:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machinning= (26,500/5,000) + 2 = $7.3 per machine hour

Finishing= (13,500/5,000) + 3 = $5.7 per machine-hour

Now, we can allocate overhead for Job L:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated overhead= 1,600*7.3 + 3,000*5.7

Allocated overhead= $28,780