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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 200,000
Fixed manufacturing overhead cost $ 2,800,000
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 $3,200. The following information was available with respect to this job:

Direct materials $ 1,472
Direct labor cost $ 1,056
Machine-hours used 79

1. Predetermined Overhead Rate:

2.

Direct materials: Direct Labor:

Overhead Applied:

Total manufacturing cost:

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