Question
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plant wide predetermined overhead rate
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plant wide 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 205,000
Fixed manufacturing overhead cost $3,075,000
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 $3,300. The following information was available with respect to this job:
Direct materials $1,518
Direct labor cost $1,089
Machine-hours used 80
Compute the total manufacturing cost assigned to Job P90.
- Required 1
Compute the plant wide predetermined overhead rate.
Predetermined overhead rate per MH
- Required 2
During the year, Job P90 was started, completed and sold to the customer for $3,300.Compute the total manufacturing cost assigned to Job P90.
Direct materials :
Direct labor :
Overhead applied :
Total manufacturing cost $
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