Ronson Corporation has two manufacturing departments--Casting and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:   CustomizingTotalEstimated total machine-hours (MHs) 5,000 5,000 10,000Estimated total fixed manufacturing overhead cost$27,500$10,500$38,000Estimated variable manufacturing overhead cost per MH$1.70$2.60   During the most recent month, the company started and completed two jobs--Job C and Job G. There were no beginning inventories. Data concerning those two jobs follow:  Job CJob GDirect materials$10,600$6,800Direct labor cost$23,700$87,900Casting machine-hours 3,400 1,600Customizing machine-hours 2,000 3,000Assume that the company uses a plantwide predetermined manufacturing overhead

rate based on machine-hours. The amount of manufacturing overhead applied to Job C is closest to:

A. $20,520
B. $20,230
C. $32,130
D. $11,900


Answer: C

Business

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