Question
Tomey Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Tomey Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departments predetermined overhead rate is based on machine-hours and the Finishing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Forming | Finishing | |
---|---|---|
Machine-hours | 18,000 | 14,000 |
Direct labor-hours | 2,000 | 8,000 |
Total fixed manufacturing overhead cost | $ 99,000 | $ 70,400 |
Variable manufacturing overhead per machine-hour | $ 2.10 | |
Variable manufacturing overhead per direct labor-hour | $ 3.70 |
During the current month the company started and finished Job T617. The following data were recorded for this job:
Job T617: | Forming | Finishing |
---|---|---|
Machine-hours | 90 | 20 |
Direct labor-hours | 30 | 60 |
Direct materials | $ 940 | $ 350 |
Direct labor cost | $ 960 | $ 1,920 |
The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.)
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