Question
Maria Company uses a job order costing system with a plantwide overhead rate on machine-hours. At the beginning of the year, the company made the
Maria Company uses a job order costing system with a plantwide overhead rate on machine-hours. At the beginning of the year, the company made the following estimates:
Machine Hours estimated to support estimated production | 210,000 |
Fixed manufacturing overhead cost | $3,360,000.00 |
Variable manufacturing overhead cost per machine-hour | $ 2.00 |
During the year, Job P90 was started, completed, and sold to the customer. The following information was available with respect to this job.
Direct materials | $1,564.00 |
Direct labor cost | $1,122.00 |
Machine-hours used | 81 |
Required:
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing overhead assigned to Job P90.
c. Compute the unit product cost of Job P90.
d. If the company uses a markup of 50%, compute the selling price for Job P90.
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