FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ashe Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined
| | Machining | Customizing | Total | |||
| Estimated total machine-hours (MHs) | 1,000 | 4,000 | 5,000 | |||
| Estimated total fixed |
$ | 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 B | Job 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:
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