Question: Zoot Company uses a predetermined overhead rate based on machine hours (mh) to apply manufacturing overhead to jobs. The company manufactures saxophones to customer specifications.

 Zoot Company uses a predetermined overhead rate based on machine hours

Zoot Company uses a predetermined overhead rate based on machine hours (mh) to apply manufacturing overhead to jobs. The company manufactures saxophones to customer specifications. The following data pertain to Job 1501, which was started and completed in May: Direct materials used: Direct labour hours worked: Direct labour rate per hour: Machine hours used: Predetermined overhead rate per mh: $2,500 800 dlh $19.00/dlh 600 mh $27.00/mh After the year ended, the actual overhead costs incurred at Zoot Co. was determined to be $525,000 and the actual number of machine hours used was 17,500 mh. What was the total manufacturing cost for Job 1501 when it was completed in May? $17,700 $35,700 $33,900 $39,300

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