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 | 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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