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Need answer for part e only The organisation you work for has a job-order costing system using predetermined overhead rates. The organisation has two different
Need answer for part e only
The organisation you work for has a job-order costing system using predetermined overhead rates. The organisation has two different processes, namely, painting and assembling. The predetermined overhead rate for painting is based on machine-hours and the predetermined overhead rate for assembly is based on direct labour-hours. The following estimates are available for this year: Estimates Direct labour-hours Machine-hours Fixed manufacturing overhead cost Painting Assembly 2,000 10,000 750 199,000 $55,000 5,000 Page 4 of 9 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labour-hour $3.00 $2.00 During the year, consider Job 105 with the following information: ob 105 Direct labour-hours Machine-hours Direct materials Direct labour cost Painting Assembly 50 15 $125 $700 15 50 $510 $250 Required a) b) c) d) e) Calculate the predetermined overhead rates used for painting and assembly. (6 marks) Calculate the total overhead cost applied to Job 105. (6 marks) Calculate the total manufacturing cost recorded for Job 105. (4 marks) Considering that Job 105 contains 100 units, calculate the unit product cost. (6 marks) Regarding Job 10s, what happens to the total painting overhead costs and unit product cost if the estimated variable manufacturing overhead for painting for the year is amended from $3.00 per machine-hour to $ 3.50 per machine-hours? Justify your answer. (8 marks)Step by Step Solution
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