Question
I'm not sure how to compute this question on my job order costing project. Can you help? What would be the actual (not applied) total
I'm not sure how to compute this question on my job order costing project. Can you help?
What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?
I computed the job cost sheet for Job #1 as follows:
Cost Summary
Direct Materials $6,700.00
Direct Labor $150.00
Manufacturing Overhead $2,700.00
Total Product Cost $9,550.00
Unit Product Cost $9,550.00
The table cost for Job #1 is below:
Step 2 The first order you received was to manufacture a table using a table top and four legs. This is your Job #1.
The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis.
Table Top $2,700.00
Table Leg $1,000.00
Drawer $470.00
The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours.The company estimates that there will be 12 direct labor hours worked during the month.
The estimated manufacturing overhead cost for the month is:
a. Factory supervisor salary per month $3,500.00
b. Rent for the factory per month $1,300.00
c. Depreciation of factory equipment per month $600.00
Total Estimated manufacturing overhead $5,400.00
What is the predetermined manufacturing overhead rate?$450
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started