Merati Corporation Has Two Manufacturing Departments--Forming and Assembly

question 269

Multiple Choice

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:

-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 B is closest to:

• A) $9,400
• B) $25,160
• C) $32,670
• D) $34,560

---

Definitions:

Budgeted Balance Sheet

A prediction of a company’s financial position at the end of a specified period, incorporating anticipated assets, liabilities, and equity based on the budget.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure adequate cash flow.