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Saxon Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for
Saxon Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. | ||||||||||||
The company based its predetermined overhead rate for the current year on 10,000 machine-hours, | ||||||||||||
total fixed manufacturing overhead cost of $91,000, and a variable manufacturing overhead rate of $2.40 per machine-hour. | ||||||||||||
Job K373, which was for 60 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: | ||||||||||||
Total machine-hours | 120 | |||||||||||
Direct materials | 645 | |||||||||||
Direct labor cost | 3720 | |||||||||||
a. Calculate the estimated total manufacturing overhead for the year. | d. Calculate the total job cost for Job K373. | |||||||||||
b. Calculate the predetermined overhead rate for the year. | e. Calculate the unit product cost for Job K373. | |||||||||||
c. Calculate the amount of overhead applied to Job K373. |
Please answer the following with the explanation.
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