: Job Order Costing (19 Marks) Gonzalez Ltd uses a job-order costing system with a plant-wide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 120,000 Fixed manufacturing overhead cost $780,000 Variable manufacturing overhead cost per machine hours $4.00 Required: a. 6 Marks Calculate the predetermined overhead rate. b. 4 Marks During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials cost $540 Direct labour cost $252 Machine-hours used 50 Calculate the total manufacturing cost assigned to Job 400. c. 5 Marks During the year, the company worked a total of 156,000 machine hours on all jobs and incurred actual manufacturing overhead costs of $1,620,000. Calculate the amount of under-applied or over-applied overhead for the year. d. 4 Marks (This question is not related to the above questions.) What factors should be considered in selecting a base to be used in calculating the predetermined overhead rate? Briefly explain.

Assessment 1 2019, MA (1) - Protected View - Saved to this RC A Boo -08 Share Comments File Home Insert Design Layout References Mailings Review View Zotero Help Grammarly Acrobat Search PROTECTED VIEW Be careful-files from the Internet can contain virusas. Unless you need to edit it's safer to stay in Protected view Enable Editing Would you expect any disagreement between the two men over the price the brother-in-law should pay? Explain. What price does the CEO probably have in mind? What price does the brother-in-law probably have in mind? Question 2: Job Order Costing (19 Marks) Gonzaloz Ltd uses a job-order costing system with a plant-wide overhead rate based on machine-bours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 120,000 Fixed manufacturing overhead cost $780,000 Variable manufacturing overhead cost per machine hours $4.00 Required: a. 6 Marks Calculate the predetermined overhead rate. b. 4 Marks During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials cost $540 Direct labour cost $252 Machine-hours used 50 Calculate the total manufacturing cost assigned to Job 400. Page 3 of 5 Dell Update 1 update is ready to install View Details Install Rominc Later Page 3 of 7259 wurus 4 A A n c tg 4:51 PM A (NG S W UK 21/08/2019