Job-Order Costing: Calculating Unit Product Costs Using the predetermined overhead rates that you computed in (1) above, compate the sotal manufacturing cost assigned to Job 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some if the company used a plantwide predetermined overhead rate based on direct labor- hours, rather than using departmental rates? Explain No computations are necessary EXERCISE 2-4 Job Order Costing for . Service Company LO2-1 02-2. L02-3 Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. Ar the beginning of the year, Yancey made the following estimates Direct labor-dolars to support all productions Fixed overhead cost $8,000,000 Variable overhead cost per direct labor-dollar $4,800.000 0.05 Required I. Compute the predetermined overhead rate. 2 During the year, Yancey prodaced a film titled Yow Can Say That Again that incurred the following costs: Direct materials Direct labor cost $1,259,000 $2400.000 Compute the total job cost for this particular film EXERCISE 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs LO2-1 LO2-2, LO2-3, LO2-4 Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year Molding Fabrication Total 20,000 30,000 50000 $700,000 $210,000 $910.000 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-our$3.00 $1.00 During the year, the company had no beginning or ending inventories and it started com- pleted, and sold only two Jab Job D 70 and Job 200. It provided the following information related to those two jobs Job O-70 Direct materials cost Molding Fabrication Total $375,000 $325,000 $700.000 $200,000 $160,000 $360,000 14,000 6,000 20.000 Molding Fabrication Tota $300,000 $250,000 $550,000 $175,000 $225.000 $400.000 C-200 Direct materials cost Direct labor cost . 6,000 24,000 30000 overhead during the year Delph had no underapplied or overapplied manufacturing Required I. Assume Delph uses a plantwide prodetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate b. Compute the total manufacturing cost assigned to Job D-70 and Joh G-200
