Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month: The manufacturing overhead applied is closest to:

A) $7,500
B) $33,075
C) $8,100
D) $30,625

We need to calculate the manufacturing overhead applied using the predetermined overhead rate based on capacity.

Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total capacity of the shaper machine
= $357,500 / 14,300 machine hours
= $25 per machine hour

Now we need to calculate the machine hours used and multiply by the predetermined overhead rate to get the manufacturing overhead applied.

Direct materials used = $218,000
Direct labor incurred = $82,000
Manufacturing overhead incurred = $30,625
Total cost = $330,625

Machine hours used = Direct labor hours worked (7,700) + Machine hours used by automated shaper (5,800)
= 13,500 machine hours

Manufacturing overhead applied = Predetermined overhead rate x Machine hours used
= $25 x 13,500
= $337,500

Therefore, the manufacturing overhead applied is closest to $30,625.