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:
Compute the plantwide predetermined overhead rate.
Machine-hours required to support estimated production230,000Fixed manufacturing overhead cost$4,600,000Variable manufacturing overhead cost per machine-hour$2.00
2. During the year, Job P90 was started, completed, and sold to the customer for $3,800. The following information was available with respect to this job:
Direct materials$1,748Direct labor cost$1,254Machine-hours used85
Compute the total manufacturing cost assigned to Job P90.
- Compute the plantwide predetermined overhead rate.
- During the year, Job P90 was started, completed and sold to the customer for $3,800.Compute the total manufacturing cost assigned to Job P90.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started