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 |
| 250,000 |
Fixed manufacturing overhead cost | $ | 6,000,000 |
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 $4,200. The following information was available with respect to this job:
|
|
|
Direct materials | $ | 1,932 |
Direct labor cost | $ | 1,386 |
Machine-hours used |
| 89 |
Compute the total manufacturing cost assigned to Job P90.
Compute the plantwide predetermined overhead rate per MH?
During the year, Job P90 was started, completed, and sold to the customer for $4,200. Compute the total manufacturing cost assigned to Job P90.
Direct Materials?
Direct Labor?
Overhead applied?
Total manufacturing cost? $
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