Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: FormingCustomizingTotalEstimated total machine-hours (MHs) 3,000 7,000 10,000Estimated total fixed manufacturing overhead cost$16,500$20,300$36,800Estimated variable manufacturing overhead cost per MH$1.70$2.50 During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow: Job AJob HDirect materials$12,800$6,700Direct labor cost$24,300$7,800Forming machine-hours 2,000 1,000Customizing machine-hours 2,800 4,200Assume 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 H is closest to:
A. $30,888
B. $29,880
C. $7,200
D. $22,680
Answer: B
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