Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MoldingFinishingTotalEstimated total machine-hours (MHs) 4,000 1,000 5,000Estimated total fixed manufacturing overhead cost$19,600$2,400$22,000Estimated variable manufacturing overhead cost per MH$1.10$2.10 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job AJob MDirect materials$13,600$7,500Direct labor cost$20,700$7,400Molding machine-hours 2,700 1,300Finishing machine-hours 400 600 Assume that the company uses a plantwide predetermined manufacturing overhead rate
based on machine-hours. The total manufacturing cost assigned to Job M is closest to:
A. $10,830
B. $25,730
C. $7,500
D. $7,400
Answer: B
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