Best

Tire manufactures tires for all-terrain vehicles.

Best

uses job costing and has a perpetual inventory system. On

November

22,

Best

received an order for

130

TX tires from ATV Corporation at a price of

$80

each. The job, assigned number 298, was promised for

December

10. After purchasing the materials,

Best

began production on

November

30 and incurred the following direct labor and direct materials costs in completing the order:

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(Click the icon to view the costs.)

Best

allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs

($540,000)

and expected direct labor hours

(20,000).

Job 298 was completed on

December

3 and shipped to ATV on

December

5.

Read the requirements

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Requirement 1. Prepare a job cost record for Job 298.

Calculate the predetermined overhead rate, then apply manufacturing overhead to the job. Begin by identifying the formula and computing the predetermined overhead rate.

Estimated yearly overhead costs

Estimated yearly direct labor hours

=

Predetermined overhead rate

Part 2

540000

20000

=

per hour

Part 3

Complete the job cost record in order of direct materials, direct labor, and allocated manufacturing overhead. Then prepare the overall cost summary. (List the dates in chronological order. Enter the labor time records in the correct row according to date. If an input field is not used in the table, leave the input field empty; do not enter a zero.)

Job Cost Record
Job No.	298
Customer Name		ATV Corporation
Job Description		130 TX tires
Date Promised 12-10
	Direct Materials
	Requisition
Date	Number	Amount
20XX
1130	437	960
122	439
Totals

Date Started 11-30

Direct Labor

Labor Time

Record

Number

Amount

1896

216

Date Completed 12-3
Manufacturing Overhead Allocated
Date	Rate		Amount
123	22	per
	direct labor hr.
Overall Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Allocated
Total Job Cost

Part 4

Requirement 2. Calculate the total profit and the per-unit profit for Job 298. (Round your answer to two decimal places.)

	Job 298
Sales
Less: Cost of job
Total profit on job
Number of tires
Per-unit profit

Data table

Date	Labor Time Record No.	Description	Amount
11/30	1896	12 hours at $18	$216
12/3	1904	30 hours at $14	$420

Date	Materials Requisition No.	Description	Amount
11/30	437	60 lbs. rubber at $16	$960
12/2	439	40 meters polyester fabric at $12	$480
12/3	501	100 meters steel cord at $10	$1,000

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