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JD Manufacturing is a small plastic products manufacturer. The company uses machine hours as the cost driver to calculate the single, plant-wide predetermined rate to
JD Manufacturing is a small plastic products manufacturer. The company uses machine hours as the cost driver to calculate the single, plant-wide predetermined rate to allocate manufacturing support costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for an order for Jenson and Brothers: What are the total estimated manufacturing costs for the Jenson and Brothers job?
| JD | Jensen Brothers | |
| Direct materials | $40,000 | $1,000 |
| Direct labor | $10,000 | $200 |
| Manufacturing support costs | $30,000 | |
| Machine-hours | 100,000 | 900 |
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