Question
Please answer all questions and please show work. Make it easy to read. 1). Compute the predetermined overhead rate used during the year in the
Please answer all questions and please show work. Make it easy to read.
1). Compute the predetermined overhead rate used during the year in the Fabrication Department. (Round to two decimal places.) Do the same for the Finishing Department. (Round to two decimal places.) Be careful to use the proper cost driver.
2). Compute the total overhead cost applied to Job 25 (in dollars and cents).
3). What would be the total cost recorded for Job 25? If Job 25 contained 50 units, what would be the unit product cost? If it contained 800 units, what would be the unit product cost? (Round to two decimal places.)
Tinkle-Tinkle Glass Company makes glass globe paper weights for desks. The company uses a job-order cost system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Fabrication Department is based on machine hours, and the rate in the Finishing Department is based on direct labor hours. At the beginning of the year, the company's management made the following estimates for the year: tnt. Fabrication Finishing Machine hours Direct labor hours Direct material cost Direct labor cost Fixed manufacturing overhead cost Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor hour 83,000 30,000 $412,000 $299,000 28,000 43,000 $213,000 $692,000 $799,000 $279,000 $2.05 $2.00Step by Step Solution
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