Grades to Homework chapter 2 Help Save Exit Submit Check my

Grades to Homework chapter 2 Help Save & Exit Submit Check my Exercise 2-9 Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3 Taveras Corporation is curenty operating at 50% of its avalable manufacturing capacity. uses a joborder costing system with a plantwide predebermined overhead rate based on machine-hours. At the beginning of the yeat the company made the folowing 20 Machine-houre required to support estinated predaet ion 5,720,000 Required: t. Compuie the plantwide peedetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $4,400. The following information was available with eespect to this job Compute the total manufacturing cost assigned to Job P90. Complete this question by entering your answers in the tabs below 5 7 8 9

Solution

1. Plantwide overhead rate :

Fixed overhead rate = 5720000/260000 = 22 per machine hour

Total overhead rate = 22+2 = 24 per machine hour

2. Calculate total manufacturing cost assigned :

Direct material cost	2024
Direct labour cost	1452
Overhead cost (91*24)	2184
Total manufacturing cost	5660