Question
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions $ 8,500,000
Fixed overhead cost $ 5,100,000
Variable overhead cost per direct labor-dollar $ 0.09
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials $ 1,380,000
Direct labor cost $ 2,550,000
Compute the total job cost for this particular film.
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