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Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as E costumes and props.
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as E costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items E such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its E overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar $ $ $ 8, 840,000 5,304,000 0.12 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost $ $ 1,314,000 2,652,000 Compute the total job cost for this particular film
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