Question

Wildlis correct of incorrect for the work you have completed so far. It does not indicate cop Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the followin estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 245,000 $ 4,410,000 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 $4,100. The following information was available respect to this job: Direct materials Direct labor cost Machine-hours used $ 1,886 $ 1,353 88 Compute the total manufacturing cost assigned to Job P90. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. < Prev 4 of 4 !! Next >

Answer 1

Solution 1:

Plant wide predetermined overhead rate = Estimated overhead / Estimated machine hours

= ($4,410,000 + 245000*$2) / 245000 = $20 per machine hour

Solution 2:

Manufacturing cost assigned to Job P90 = Direct materials + Direct labor + Overhead applied

= $1,886 + $1,353 + (88*$20)

= $4,999