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ABC Company uses a job-order costing system. The company made the following estimates at the start of the year: Direct labor hours (DLHS) for
ABC Company uses a job-order costing system. The company made the following estimates at the start of the year: Direct labor hours (DLHS) for estimated production: 120,000 Machine hours (MHS) for estimated production: 60,000 Fixed anufacturing costs: $480,000 Variable manufacturing overhead per DLH: $3 Variable manufacturing overhead per MH: $6 Job A55 was started and completed during the year. The following information relates to this job: Direct materials: $150 Direct labor cost $450 Direct labor hours 20 Machine hours 12 Required (Show all calculations/working in the answer boxes): A) If the company uses a plantwide predetermined overhead rate based on direct labor hours, calculate this predetermined overhead rate. What is the total manufacturing cost of job A55? B) If the company uses a plantwide predetermined overhead rate based on machine hours, calculate this predetermined overhead rate. What is the total manufacturing cost of job A55? Q Search TH 2002
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