Question

Homework - Chapter 2 G Saved Exercise 2-14 Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3] Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. 14.32 points At the beginning of the year, Yancey made the following estimates eBook 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 Print References 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. Complete the question by entering your answers in the tabs given below Required 1Required 2 Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DL$ Required 1 Required 2>

Answer 1

1. Predetermined overhead rate: 0.72 per DL$

Estimated total overhead cost = $5304000 + ($0.12 x $8840000) = $5304000 + $1060800 = $6364800

Predetermined overhead rate = $6364800/$8840000 = 0.72 per DL$

2.

Direct materials	1314000
Direct labor	2652000
Overhead applied (0.72 x $2652000)	1909440
Total job cost	5875440