Question
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide 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 | 250,000 | |
Fixed manufacturing overhead cost | $ | 6,000,000 |
Variable manufacturing overhead cost per machine-hour | $ | 2.00 |
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $4,200. The following information was available with respect to this job:
Direct materials | $ | 1,932 |
Direct labor cost | $ | 1,386 |
Machine-hours used | 89 | |
Compute the total manufacturing cost assigned to Job P90.
Wilmington Company has two manufacturing departmentsAssembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the yearJob Bravo.
Estimated Data | Assembly | Fabrication | Total | |||
Manufacturing overhead costs | $ | 4,370,000 | $ | 4,830,000 | $ | 9,200,000 |
Direct labor-hours | 115,000 | 69,000 | 184,000 | |||
Machine-hours | 46,000 | 230,000 | 276,000 | |||
Job Bravo | Assembly | Fabrication | Total |
Direct labor-hours | 24 | 16 | 40 |
Machine-hours | 16 | 19 | 35 |
Required:
1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo?
2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo?
(Round your intermediate calculations to 2 decimal places.)
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide predetermined overhead rate. Predetermined overhead rate per MH Complete this question by entering your answers in the tabs below. Required 1 Required 2 During the year, Job P90 was started, completed and sold to the customer for $4,200. Compute the total manufacturing cost assigned to Job P90. Direct materials Direct labor Overhead applied Total manufacturing cost 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo Manufacturing overhead applied from Fabrication to Job Bravo Total departmental manufacturing overhead applied to Job Bravo
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