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: Forming Assembly Total
Estimated total machine-hours (MHs) 5,000 5,000 10,000
Estimated total fixed manufacturing overhead cost 28,000 10,500 38,500
Estimated variable manufacturing overhead cost per MH $ 1.80 $ 2.60
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:
Job B Job L
Forming machine-hours 3,400 1,600
Assembly machine-hours 2,000 3,000
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 L is closest to: (Round your intermediate calculations to 2 decimal places.)

$34,560

Explanation:

The computation of manufacturing overhead applied to Job L is shown below:-

But before that we need to do the following calculations

The Predicted fixed cost of overhead per machine hour for F is

= Predicted fixed cost of overhead for F ÷ Number of machine hours

= $28,000 ÷ 5,000

= $5.60

Now the Predetermined rate for F

= Predicted  variable overhead cost per machine hour + Predicted overhead cost per machine hour

= $1.80 + $5.60

= $7.40

Now

Predicted fixed overhead cost per machine hour for A is

= Predicted fixed cost of overhead ÷ Number of machine hours

= $10,500 ÷ 5,000

= $2.10

Now the Predetermined rate for A

= Predicted  variable overhead cost per machine hour + Predicted overhead cost per machine hour

= $2.60 + $2.10

= $4.70

Now

Manufacturing overhead cost applied to Job B for F is

= Number of machine hours for F × Predetermined rate for F

= 3,400 × $7.40

= $25,160

And, Manufacturing overhead cost applied to Job B for A is

= Number of machine hours for A × Predetermined rate for A

= 2,000 × $4.70

= $9,400

So,

Manufacturing overhead applied to Job B is

= Manufacturing overhead cost applied to Job B for F + Manufacturing overhead cost applied to Job B for A

= $25,160 + $9,400

= $34,560