Question

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.

At the beginning of the year, Yancey made the following estimates:

Direct labor-dollars to support all productions	$	8,000,000
Fixed overhead cost	$	4,800,000
Variable overhead cost per direct labor-dollar	$	0.05

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	$	1,259,000
Direct labor cost	$	2,400,000

Compute the total job cost for this particular film.

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. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar 8,000,000 s4,800,000 0.05 Requirecd 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 $ 1,259,000 Direct labor cost 2,400,000 Compute the total job cost for this particular film. Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs given below. Required 1Required 2 Compute the predetermined overhead rate. (Round your answers to 2 decimal places.) Predetermined overhead 1.10 Deir

Answer 1