Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Exercise 2-14 Job-Order Costing for a Service Company (L02-1, LO2-2, LO2-3) Yancey Productions is a film studio that uses a job-order costing system. The company's

image text in transcribed
image text in transcribed
Exercise 2-14 Job-Order Costing for a Service Company (L02-1, LO2-2, LO2-3) Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor Includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar $ 8,230,000 $ 4,938,000 $ 0.14 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: $ 1.422.000 Direct materials Direct labor cost $ 2,469,000 Compute the total job cost for this particular film Answer is complete but not entirely correct. Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar 8,230,000 $ 4,938,000 $ 0.14 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost $ 1,422,000 $ 2,469,000 Compute the total job cost for this particular film. Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal places) Direct materiais Direct labor Overhead applied Total job cost 1,422,000 2.469.000 5,178,060 9.000.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

28th Edition

1337902683, 978-1337902687