Question

Help Save & ExitSubmit Check my work Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of tems 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 At the beginning of the year, Yancey made the following estimates Direct labor-dollars to support all productions Fixed overhead cos Variable overhead eost per direct labor-do1lar S 8,26e,eee $ 4,956,eee 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 2,478,eee 10, 3EEİ Score answer >

Answer 1

1	Predetermined overhead rate=Estimated overhead cost/Estimated direct labor-dollars
	Estimated overhead cost:
				$
	Fixed			4956000
	Variable	(8260000*0.17)		1404200
	Total			6360200
	Predetermined overhead rate=6360200/8260000=$0.77 per DLS
2	Total Job cost:
					$
	Direct materials				1386000
	Direct labor				2478000
	Overhead applied		(2478000*0.77)		1908060
	Total job cost				5772060