Ashe 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:
Machining CustomizingTotal
Estimated total machine-hours (MHs) 1,000 4,000 5,000
Estimated total fixed manufacturing overhead cost$4,700$9,200$13,900
Estimated variable manufacturing overhead cost per MH$1.10$2.60
During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data concerning those two jobs follow:
Job BJob K
Machining machine-hours 700 300
Customizing machine-hours 1,600 2,400
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 K is closest to:
A. $13,716
B. $1,740
C. $13,500
E. $11,760
Answers: 2
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Ashe Corporation has two manufacturing departments--Machining and Customizing. The company used the...
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