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I need help in how to set this up. Thanks! voter lechnology, Inc., has a job-order costing system. The company uses predetermined overhead rates in
I need help in how to set this up. Thanks!
voter lechnology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labor hours. At the beginning of the most recent year, the company's management made the following estimates for the year: Department A Department B Machine-hours 70,000 19.000 Direct labor-hours 30,000 60,000 Direct materials $195,000 $282,000 Direct labor....... $260,000 $520,000 Manufacturing overhead ... $420,000 $705,000 Job 243 entered into production an April 1 and was completed on May 12. The company's cost records show the following information about the job: Department Department A B Machine-hours ..... 250 60 Direct labor-hours 70 120 Direct materials.... $840 $1,100 Direct labor........... $610 $880 Required: a. Compute the predetermined overhead rates for Department A and Department B. b. Compute the total overhead cost applied to Job 243. c. Compute the total job cost of Job 243 d. Compute the unit cost of Job 243 if the job produces 300 units Step by Step Solution
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