Answer:
a. $5,604
Explanation:
Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)
= $99,000 + ($2.10 per machine-hour × 18,000 machine-hours)
= $99,000 +$37,800 = $136,800
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred
= $136,800 ÷ 18,000 machine-hours
= $7.60 per machine-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job
= $7.60 per machine-hour × 90 machine-hours
= $684
Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)
= $70,400 + ($3.70 per direct labor-hour × 8,000 direct labor-hours)
= $70,400 + $29,600 = $100,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred
= $100,000 ÷8,000 direct labor-hours = $12.50 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job
= $12.50 per direct labor-hour × 60 direct labor-hours
= $750
Forming Finishing Total
Direct materials........................$940 $350 $1,290
Direct labor...............................$960 $1,920 $2,880
Manufacturing overhead.......$684 $750 $1,434
Total cost of Job T617........................................................$5,604
