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 | 165,000 | |
Fixed manufacturing overhead cost | $ | 1,980,000 |
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 $2,500. The following information was available with respect to this job:
Direct materials | $ | 1,150 |
Direct labor cost | $ | 830 |
Machine-hours used | 72 | |
Compute the total manufacturing cost assigned to Job P90.
1. what is the predetermined overhead rate?
2. what are the direct materials, direct labor, operational overhead, and total manufacturing cost
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