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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
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 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined overhead rate. 205,000 $3,075,000 $2.00 2. During the year, Job P90 was started, completed, and sold to the customer for $3,300. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used $1,518 $1,089 80 Compute the plantwide predetermined overhead rate. Predetermine d overhead rate per MH Compute the total manufacturing cost assigned to Job P90. Direct materials Direct labor Overhead applied Total manufacturing cost $0
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