Question

Assignment 4:Job Order Costing 6 Saved Help Save & Exit Submit Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job order costing system with a plantwide predetermined overhead rate based on machine hours. At the beginning of the year, the company made the following estimates: Nachine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine hour $ 170,000 1,700,000 2.00 eBook Print Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $2,000. The following information was available with respect to this job: $ 920 Direct materials Direct labor cost Nachine-hours used $ 660 Compute the total manufacturing cost assigned to Job P90. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide predetermined overhead rate.

Answer 1

1. Given machine hours = 170,000 machine hours

Fixed manufacturing overhead cost = $1,700,000

Variable manufacturing overhead cost per machine hour = $2.00 = 170,000 * $2.00 = $340,000

Calculation of plantwide predetermined overhead rate:

Overhead rate =

Fixed manufacturing overhead Number of machine hours - + $2.00

= = $12 per machine hour

1,700,000 - 170,000 machinehours + $2.00

Computation of total manufacturing cost assigned tojob P90

	Amount
Direct materials	920
Direct labor cost	660
Overheads applied (73 machine hours *$12)	876
Total manufacturing cost	$2,456