Question

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: Machine-hours required to support estimated production Fixed and acturing overhead cost Variable manufacturing overhead cost per machine-hour $ $ 170.000 1,700,000 2.00 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: Direct materials Direct labor cost Machine-hours used $ $ 920 660 73 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. Predetermined overhead rate per MH Required 1 Required 2 >

Answer 1

estimated fixed manufacturing overhead cost $ 1,700,000 estimated variable manufacturing overhead cost $ 340,000 $2*170,000 estimated total manufacturing overhead cost | $ 2,040,000 total estimated machine hours 170,000 12 predetermined overhead rate $ per MH direct materials direct labor $ 920 $ 660 $ 876 $ 2,456 overhead applied $12*73 total manufacturing cost

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