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

240,000

Fixed manufacturing overhead cost

$

4,320,000

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 $4,000. The following information was available with respect to this job:

Direct materials

$

1,840

Direct labor cost

$

1,320

Machine-hours used

87

Compute the total manufacturing cost assigned to Job P90.