This problem has been solved!See the answerPebbles 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 Finishing TotalEstimated total machine-hours (MHs) 2,000 3,000 5,000Estimated total fixed manufacturing overhead cost $ 9,800 $ 6,300 $ 16,100Estimated variable manufacturing overhead cost per MH $ 2.00 $ 2.40 During the most recent month, the company started and completed two jobs--Job A and Job L. There were no beginning inventories. Data concerning those two jobs follow:Job A Job LDirect materials $ 15,400 $ 9,600Direct labor cost $ 24,900 $ 6,200Casting machine-hours 1,400 600Finishing machine-hours 1,200 1,800Assume that the company uses a plantwide predeterminedmanufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job L is closest to:.$9,600$6,200$28,904$13,104

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facundobuzzetti facundobuzzetti · Answer 1 · 2019-10-01T00:38:28+02:00

Answer:

Total manufacturing cost= $18,288

Explanation:

Giving the following information:

Casting total machine-hours (MHs) 2,000

Finishing total machine-hours (MHs) 3,000

Total Estimated= 5,000

Casting fixed manufacturing overhead cost= $ 9,800

Finishing fixed manufacturing overhead cost= $ 6,300

Estimated total= $ 16,100

Casting estimated variable manufacturing overhead cost per MH $ 2.00

Finishing estimated variable manufacturing overhead cost per MH $ 2.40

Job L

Direct materials $ 9,600

Direct labor cost $ 6,200

Casting machine-hours 600

Finishing machine-hours 1,800

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.

Total manufacturing cost= (predetermined overhead rate* actual machine-hours) + (variable manufacturing overhead rate*actual machine-hours)

predetermined overhead rate= total estimated manufacturing overhead/ total amount of allocation based

predetermined overhead rate= 16100/5000= $3.22 per machine-hour

Total manufacturing cost= (3.22* 2400 hours) + (2*2400+2.40*2400)= $18,288