Geo

Tire manufactures tires for all-terrain vehicles.

Geo

uses job costing and has a perpetual inventory system. On

September

22,

Geo

received an order for

180

TX tires from ATV Corporation at a price of

$80

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

October

10. After purchasing the materials,

Geo

began production on

September

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.)

Geo

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

($410,000)

and expected direct labor hours

(20,500).

Job 298 was completed on

October

3 and shipped to ATV on

October

5.

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.

=

Predetermined overhead rate

Part 2

=

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		180 TX tires
Date Promised 10-10
	Direct Materials
	Requisition
Date	Number	Amount
20XX
Totals

Date Started 9-30
Direct Labor
Labor Time
Record
Number	Amount

Date Completed 10-3
Manufacturing Overhead Allocated
Date	Rate		Amount
		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

tion 3