Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour Forming Finishing 18,000 14,000 2,000 8,000 $99,000 $70,400 $ 2.10 $ 3.70 During the current month the company started and finished Job T617. The following data were recorded for this job: Job T617: Machine-hours Direct labor-hours Direct materials Direct labor cost Forming Finishing 90 20 30 60 $940 $ 350 $960 $1,920 The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $5,604 $2,584 O $684 O $3,020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started