Bluebird Tire manufactures tires for allterrain vehicles Blu

Bluebird Tire manufactures tires for all-terrain vehicles.

BluebirdBluebird

uses job costing and has a perpetual inventory system. On

NovemberNovember

22,

BluebirdBluebird

received an order for

170170

TX tires from ATV Corporation at a price of

$ 75$75

each. The job, assigned number 298, was promised for

DecemberDecember

10. After purchasing the materials,

BluebirdBluebird

began production on

NovemberNovember

30 and incurred the following direct labor and direct materials costs in completing the order:

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(Click the icon to view the costs.)

BluebirdBluebird

allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs

($ 396 comma 000$396,000)

and expected direct labor hours

(18 comma 00018,000).

Job 298 was completed on

DecemberDecember

3 and shipped to ATV on

DecemberDecember

5.Read the requirements

LOADING...

.

Requirement 1. Prepare a job cost record for Job 298.

Calculate the predetermined overhead rate, then apply manufacturing overhead to the job. Begin by identifying the formula and computing the predetermined overhead rate.

Estimated yearly overhead costs

/

Estimated yearly direct labor hours

=

Predetermined overhead rate

$396,000

/

18,000

=

$22

per hour

Complete the job cost record in order of direct materials, direct labor, and allocated manufacturing overhead. Then prepare the overall cost summary. (List the dates in chronological order. Enter the labor time records in the correct row according to date. Complete only necessary answer boxes. If a box is not used in the table leave the box empty; do not enter a zero.)

Job Cost Record

Job No.

298

Customer Name

ATV Corporation

Job Description

170 TX tires

Date Promised 12-10

Direct Materials

Requisition

Date

Number

Amount

20XX

11–30

437

$720

12–2

439

400

12–3

501

1,400

Totals

$2,520

Date Started 11-30

Direct Labor

Labor Time

Record

Number

Amount

1896

$216

1904

480

$696

Date Completed 12-3

Manufacturing Overhead Allocated

Date

Rate

Amount

12–3

per

direct labor hr.

Overall Cost Summary

Direct Materials

Direct Labor

Manufacturing Overhead

Allocated

Total Job Cost

Choose from any list or enter any number in the input fields and then click Check Answer.

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part remaining

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Final Check

Data Table

Date

Labor Time Record No.

Description

Amount

11/30

1896

12 hours at $18

$216

12/3

1904

30 hours at $16

$480

Materials

Requisition

Date

No.

Description

Amount

11/30

437

60 lbs. rubber at $12

$720

12/2

439

40 meters polyester fabric at $10

$400

12/3

501

100 meters steel cord at $14

$1,400

PrintDone

Requirements

1.

Prepare a job cost record for Job 298.

2.

Calculate the total profit and the per-unit profit for Job 298.

Estimated yearly overhead costs

/

Estimated yearly direct labor hours

=

Predetermined overhead rate

Solution

Req. 1

Job Cost Record

JOB NO. 298

CUSTOMER NAME AND ADDRESS ATV Corporation

JOB DESCRIPTION 170 TX tires

DATE PROMISED 12-10

DATE STARTED 11-30

DATE COMPLETED 12-3

DATE

DIRECT MATERIALS

DIRECT LABOR

MANUFACTURING OVERHEAD ALLOCATED

REQUISITION NO.

AMOUNT

LABOR TIME RECORD NO.

AMOUNT

DATE

RATE

AMOUNT

20

XX

11

30

437

$720

1896

$216

12

3

$22 per direct

12

2

439

400

labor hour^a

$924

3

501

1,400

1904

480

OVERALL COST SUMMARY

DIRECT MATERIALS.………...

$2520

DIRECT LABOR............………

696

MANUFACTURING OVERHEAD ALLOCATED…...

924

Totals

$2520

$696

TOTAL JOB COST.......…..

$4140

                                      ^aPredetermined

=

$396,000

=

$22 per direct labor hour

mfg. overhead rate

18000

Overhead allocated

=

(12 hrs + 30 hrs) × $22 per DL hour

=

$924

Req. 2

Job 298

Sales ($75 × 170 tires)

$ 12750

Less cost of job (from Req. 1)

   4140

     Total profit on job

$ 8610

Divide by number of tires

÷ 170

      Per-unit profit

$ 50.65

Job Cost Record
JOB NO. 298 CUSTOMER NAME AND ADDRESS ATV Corporation JOB DESCRIPTION 170 TX tires
DATE PROMISED 12-10	DATE STARTED 11-30	DATE COMPLETED 12-3
DATE	DIRECT MATERIALS	DIRECT LABOR	MANUFACTURING OVERHEAD ALLOCATED
REQUISITION NO.	AMOUNT	LABOR TIME RECORD NO.	AMOUNT	DATE	RATE	AMOUNT
20	XX
11	30	437	$720	1896	$216	12	3	$22 per direct
12	2	439	400					labor houra	$924
	3	501	1,400	1904	480	OVERALL COST SUMMARY
						DIRECT MATERIALS.………...	$2520
						DIRECT LABOR............………	696
						MANUFACTURING OVERHEAD ALLOCATED…...	924
Totals		$2520		$696	TOTAL JOB COST.......…..	$4140