9 3) Specialty Services utilizes job order costing and allocates manufacturing overheads based on a single...

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9 3) Specialty Services utilizes job order costing and allocates manufacturing overheads based on a single cost driver machine hours. The company estimates overhead costs of $1,200,000 for the year ending December 31, 2019. Total machine hours for the year are expected to be 60,000 hours. During June 2017, the job cost sheet showed the following costs and production data for Job #2020: Direct materials used Direct labor cost $195,000 $100,000 Direct labor hours 8,000 Machine hours 7,000 Required: 10 Marks (a) Compute the predetermined overhead rate for Specialty Services. (b) Calculate the manufacturing overhead cost assigned to Job # 2020. (c) Compute the total manufacturing cost of Job #2020. 16 8000 D 119%- 9 3) Specialty Services utilizes job order costing and allocates manufacturing overheads based on a single cost driver machine hours. The company estimates overhead costs of $1,200,000 for the year ending December 31, 2019. Total machine hours for the year are expected to be 60,000 hours. During June 2017, the job cost sheet showed the following costs and production data for Job #2020: Direct materials used Direct labor cost $195,000 $100,000 Direct labor hours 8,000 Machine hours 7,000 Required: 10 Marks (a) Compute the predetermined overhead rate for Specialty Services. (b) Calculate the manufacturing overhead cost assigned to Job # 2020. (c) Compute the total manufacturing cost of Job #2020. 16 8000 D 119%-

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