2. Michigan Manufacturing Co. is currently operating at 50% of its available manufacturing capacity. It uses a job order costing system with a plant-wide predetermined 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 50,000

Fixed manufacturing overhead costs $630,000

Variable manufacturing overhead cost per machine hour $3.00

Required: (10 points total)

1. (5 points) Compute the plant-wide predetermined overhead rate

2. (5 points) During the year, Job Y was started and completed and sold to the customer for $20,000. The following information was available with respect to this job:

Direct materials: $4,300, Direct Labor: $5,700, Machine hours used 150

Compute the total manufacturing cost assigned to Job Y-20.