Dietzen Corporation has two manufacturing departments--Casting and Finishing. 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 D and Job J. There were no beginning inventories. Data concerning those two jobs follow:
Required:a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job D.b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job J.

a.The first step is to calculate the estimated total overhead costs in the two departments.Casting
Finishing
The second step is to combine the estimated manufacturing overhead costs in the two departments ($24,000 + $31,800 = $55,800) to calculate the plantwide predetermined overhead rate as follow:
The overhead applied to Job D is calculated as follows:Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $5.58 per machine-hour × (2,700 machine-hours + 2,400 machine-hours) = $5.58 per machine-hour × (5,100 machine-hours) = $28,458Job D's manufacturing cost:
b.The overhead applied to Job J is calculated as follows:Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $5.58 per machine-hour × (1,300 machine-hours + 3,600 machine-hours) = $5.58 per machine-hour × (4,900 machine-hours) = $27,342Job J's manufacturing cost: