Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing
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 $205,000
Fixed manufacturing overhead cost $3,075,000
Variable manufacturing overhead cost per machine-hour $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 $3,300. The following information was available with respect to this job:
Direct materials $1,518
Direct labor cost $1,089
Machine-hours used 80
Compute the total manufacturing cost assigned to Job P90.
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer