Bluebird Tire manufactures tires for all-terrain vehicles.

BluebirdBluebird

uses job costing and has a perpetual inventory system. On

NovemberNovember

22,

BluebirdBluebird

received an order for

170170

TX tires from ATV Corporation at a price of

$ 75$75

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

DecemberDecember

10. After purchasing the materials,

BluebirdBluebird

began production on

NovemberNovember

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.)

BluebirdBluebird

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

($ 396 comma 000$396,000)

and expected direct labor hours

(18 comma 00018,000).

Job 298 was completed on

DecemberDecember

3 and shipped to ATV on

DecemberDecember

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

$396,000

/

18,000

=

$22

per hour

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. Complete only necessary answer boxes. If a box is not used in the table leave the box empty; do not enter a zero.)

Job Cost Record
Job No.	298
Customer Name		ATV Corporation
Job Description		170 TX tires
Date Promised 12-10
	Direct Materials
	Requisition
Date	Number	Amount
20XX
1130	437	$720
122	439	400
123	501	1,400
Totals		$2,520

Date Started 11-30
Direct Labor
Labor Time
Record
Number	Amount
1896	$216
1904	480
	$696

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

Choose from any list or enter any number in the input fields and then click Check Answer.

1

part remaining

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Final Check

Data Table

Date	Labor Time Record No.	Description	Amount
11/30	1896	12 hours at $18		$216
12/3	1904	30 hours at $16		$480

	Materials
	Requisition
Date	No.	Description	Amount
11/30	437	60 lbs. rubber at $12	$720
12/2	439	40 meters polyester fabric at $10	$400
12/3	501	100 meters steel cord at $14	$1,400

PrintDone

Requirements

1.	Prepare a job cost record for Job 298.
2.	Calculate the total profit and the per-unit profit for Job 298.