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 manufacturing overhead cost Variable manufacturing overhead cost per machine hour 215,000 $ 3,655,000 $ 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 $3,500. The following information was available with respect to this job Direct materials Direct labor cost Machine-hours used $1,61e $ 1,155 Compute the total manufacturing cost assigned to Job P90. Complete this question by entering your answers in the tabs below. Activate Windows

Answer 1

1	Estimated variable manufacturing overhead	$430,000
	(215,000 x $2.00)
	Estimated total fixed manufacturing overhead	$3,655,000
	Estimated total manufacturing overhead cost	$4,085,000
	Predetermined overhead rate =	Estimated Total manufacturing overhead cost ÷ Estimated Total amount of the allocation
	=	$4,085,000 ÷ 215,000 labor-hours
	=	$19.00	per direct labor-hour
2	Direct materials	$1,610
	Direct labor cost	$1,155
	Manufacturing overhead	$1,558
	Total manufacturing cost	$4,323