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5 August, 00:02

Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $ 320 Direct labor cost $ 260 Machine-hours used 34 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is the unit product cost for this job

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  1. 5 August, 01:48
    0
    Missing details in the 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 165,000

    Fixed manufacturing overhead cost $1,980,000

    Variable manufacturing overhead cost per machine-hour $2.00

    Answer:

    1. Predetermined Overhead Rate = $14 per machine-hour

    2. Total Manufacturing Cost = $1056

    3.

    Explanation:

    1. Calculating the plantwide predetermined overhead rate.

    First, we need to calculate the estimated total overhead

    This is calculated using the following formula

    E = F + VM

    Where F =

    M = Machine-hours = 165,000

    F = Fixed manufacturing overhead cost = $1,980,000

    V = Variable manufacturing overhead cost per machine-hour = $2.00

    By Substituton;

    E = $1,980,000 + $2.00 * 165,000

    E = $1,980,000 + $330,000

    E = $2,310,000

    The Predetermined Overhead Rate, P = E/M

    By Substitution

    P = $2,310,000/165,000

    P = $14 per machine-hour

    Hence, the Predetermined Overhead Rate is $14 per machine-hour

    2. Calculating the total manufacturing cost assigned to Job 400

    3. If Job 400 includes 60 units, the unit product cost for this job is $17.6 per unit

    Given

    Direct materials $ 320

    Direct labor cost $ 260

    Machine-hours used 34

    First, we need to calculate the overhead applied.

    Overhead Applied = Machine-hour used * Overhead Rate

    Overhead Applied = 34 * 14

    Overhead Applied = $476

    Total Manufacturing Cost = Direct materials + Direct labor cost + Overhead Applied.

    Total Manufacturing Cost = $320 + $260 + $476

    Total Manufacturing Cost = $1056

    3. If Job 400 includes 60 units, the unit product cost for this job is calculated by

    Total Manufacturing Cost : Total units for production

    = $1056/60

    = $17.6 per unit
  2. 5 August, 03:04
    0
    (A) The plant wide predetermined overhead allocation rate cannot be calculated because the question is incomplete.

    (B) Total Manufacturing Cost = $9,160

    (C) Product Cost per Unit = $152.67

    Explanation:

    (A) Predetermined Overhead Rate = Total overhead cost : Total machine hours

    Input the data on Total Overhead Cost and calculate (as the data is absent in the question here)

    Only machine hours is given.

    (B) Total Manufacturing Cost = Direct Materials Cost + Direct Labour Cost + Manufacturing Overhead Cost

    Since manufacturing overhead is absent, Total Manufacturing Cost is equal to

    $320 + ($260 * 34hrs) = $320 + $8,840 = $9,160

    (C) Product Cost per Unit = $9,160 : 60 units

    Product Cost per Unit = $152.67
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