Question
The Silver Corporation uses a departmental predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in
The Silver Corporation uses a departmental predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in each of three Departments: Fabrication, Machining and Assembly. At the beginning of the year, the Corporation made the following estimates:
Manufacturing Overhead $350,000 Fabrication
$400,000 Machining
$90,000 Assembly
$840,000 Total
Labor Cost $200,000 Fabrication
$100,000 Machining
$300,000 Assembly
$600,000 Total
Calculate the plantwide predetermined overhead rate .
Calculate the fabrication predetermined overhead rate .
Calculate the machining predetermined overhead rate
Calculate the assembly predetermined overhead rate
Based on these rates, Calculate the total manufacturing cost attributed to job XYZ below. Total cost .
Direct Materials $3,000 Fabrication
$200 Machining
$1,400 Assembly
$4,600 Total
Direct Labor $2,800 Fabrication
$500 Machining
$6,200 Assembly
$9,500 Total
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