hw c4.3

WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the companys management made the following estimates for the year:

	Department
	Preparation				Fabrication
Machine-hours		89,000				37,000
Direct labor-hours		34,500				59,600
Direct materials cost	$	191,000			$	201,000
Direct labor cost	$	273,000			$	510,000
Fixed manufacturing overhead cost	$	222,500			$	560,240
Variable manufacturing overhead per machine-hour	$	2.60				-
Variable manufacturing overhead per direct labor-hour		-			$	4.60

Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:

	Department
	Preparation					Fabrication
Machine-hours		360				75
Direct labor-hours		81				135
Direct materials cost	$	936			$	1,160
Direct labor cost	$	740			$	970