Ronson Corporaton has two manufactuaring departments-Casing and Customzing, The
ID: 2342062 • Letter: R
Question
Ronson Corporaton has two manufactuaring departments-Casing and Customzing, The company used the fotowing dats at the beginning of the year to calculate predetermined overhead Estimated total machine-hours (Hs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per PH 5,000 $: 27,500 1.70 5,000 $ 10,5e0e $ 2.60 10,000 38,000 Ouning the most recent mone the company stanted and completed two jobs-Job C and Job G. There were no begmning tnventones Data concerning those two jobs follow Direct terials otrect labor cost $23,700 $7,900 Casting machine-hours 3,4001,600 Customizing machine- hours 10,600 $6,800 ,000 2,000 Assume thot the company uses a plantwide predesermned decimal pleces) menufacturing overheed race based on machime-hours. The total manufacturing cost assigned to Job G is closest to: (Round yourExplanation / Answer
Correct Answer --- $ 40,320.00
Calculations
Casting Department
(A)
Total Fixed Overheads
$ 27,500.00
(B)
Total machine Hours
5000
(A/B)
Predetermined Overhead rate
$ 5.50
Customizing Department
(A)
Total Fixed Overheads
$ 10,500.00
(B)
Total Labor Hours
5000
(A/B)
Predetermined Overhead rate
$ 2.10
Overheads of Casting Department
Fixed Overheads Applied
(A)
Machine Hours
1600
(B)
Predetermined Overhead rate
$ 5.50
C= (AxB)
Fixed Overheads Applied
$ 8,800.00
(D)
Machine Hours
1600
(E)
Rate per Machine Hour
$ 1.70
F=(DxE)
Variable manufacturing Overheads
$ 2,720.00
(C+F)
Total manufacturing Overheads for Casting Department
$ 11,520.00
Overheads of Customising Department
Fixed Overheads Applied
(A)
Machine Hours
3000
(B)
Predetermined Overhead rate
$ 2.10
C= (AxB)
Fixed Overheads Applied
$ 6,300.00
(D)
Machine Hours
3000
(E)
Rate per Labor Hour
$ 2.60
F=(DxE)
Variable manufacturing Overheads
$ 7,800.00
(C+F)
Total manufacturing Overheads for Customising Department
$ 14,100.00
Total manufacturing Cost for JOB G
Total manufacturing Overheads for Casting Department
$ 11,520.00
Total manufacturing Overheads for Customizing Department
$ 14,100.00
Total manufacturing Overheads
$ 25,620.00
Add: Material Cost
$ 6,800.00
Add: Labor Cost
$ 7,900.00
Total manufacturing Cost
$ 40,320.00
Note
It seems like correct option is not visible in the picture.
Casting Department
(A)
Total Fixed Overheads
$ 27,500.00
(B)
Total machine Hours
5000
(A/B)
Predetermined Overhead rate
$ 5.50
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