Question

me following information applies to the questions displayed bek De Company uses a job-order costing system and has two mar facturing departments-Molding and F. tication. The company provided the following estimates at he beginning of the year Machine-hes Fixed manufac uring overhead costs Variable manuf.turing overhead cost per machine-hour Molding Fabrication 20,000 30,000 $ 700,000 $ 210,000 $ 3.00 $ 1.00 Total 50,000 $910,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $375,000 $325,000 $ 700,000 $ 200,000 $ 160,000 $360,000 14,000 6,000 20,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 300,000 $250,000 $ 550,000 $ 175,000 $225,000 $ 400,000 6,000 24,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. < Prey 7 of 8 Next > MacBook

Answer 1

	Molding	Fabrication	Total
Estimated total machine hours used	20000	30000	50000
(*) Estimated variable manufacturing overhead per machine hour	3.00	1.00
Estimated total variable manufacturing overhead	60000	30000	90000
Estimated total fixed manufacturing overhead	700000	210000	910000
Estimated total manufacturing overhead	760000	240000	1000000

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 1000000 / 50000

20.00

per MH

	Job D-70	Job C-200
Total actual machine hours used	20000	30000
Plantwide predetermined overhead rate	20.00	20.00
Manufacturing overhead applied	400000	600000
	Job D-70	Job C-200
Direct materials	700000	550000
Direct labor cost	360000	400000
Manufacturing overhead applied	400000	600000
Total manufacturing cost	1460000	1550000