Question
The Corporation has two production departments, Casting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
The Corporation has two production departments, Casting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
| Casting | Finishing |
| ||
Machine-hours |
| 17,000 |
| 7,000 | |
Direct labor-hours |
| 2,000 |
| 15,000 | |
Total fixed manufacturing overhead cost | $ | 105,400 | $ | 52,800 | |
Variable manufacturing overhead per machine-hour | $ | 1.70 |
|
| |
Variable manufacturing overhead per direct labor-hour |
|
| $ | 3.90 | |
Below is actual information related to Job 215 for the period:
Casting Finishing
Actual machine-hours 325 40
Actual direct labor-hours 50 120
Direct materials $1,200 $530
Direct labor $500 $960
Please compute the total product cost of Job 215.
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