Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Finishing Machine-hours 17,000 15,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 96,900 $ 65,800 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 3.60 During the current month the company started and finished Job M381. The following data were recorded for this job: Job M381: Forming Finishing Machine-hours 80 30 Direct labor-hours 30 40 Direct materials $ 840 $ 350 Direct labor cost $ 750 $ 1,000The total job cost for Job M381 is closest to: $2,206 $1,870 $4,076 $616
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Finishing Machine-hours 17,000 15,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 96,900 $ 65,800 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 3.60 During the current month the company started and finished Job M381. The following data were recorded for this job: Job M381: Forming Finishing Machine-hours 80 30 Direct labor-hours 30 40 Direct materials $ 840 $ 350 Direct labor cost $ 750 $ 1,000The total job cost for Job M381 is closest to: $2,206 $1,870 $4,076 $616
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
During the current month the company started and finished Job M381. The following data were recorded for this job:
The total job cost for Job M381 is closest to:
| Forming | Finishing | |||
| Machine-hours | 17,000 | 15,000 | ||
| Direct labor-hours | 1,000 | 7,000 | ||
| Total fixed |
$ | 96,900 | $ | 65,800 |
| Variable manufacturing overhead per machine-hour | $ | 2.00 | ||
| Variable manufacturing overhead per direct labor-hour | $ | 3.60 |
During the current month the company started and finished Job M381. The following data were recorded for this job:
| Job M381: | Forming | Finishing | ||
| Machine-hours | 80 | 30 | ||
| Direct labor-hours | 30 | 40 | ||
| Direct materials | $ | 840 | $ | 350 |
| Direct labor cost | $ | 750 | $ | 1,000 |
|
$2,206
|
||
|
$1,870
|
||
|
$4,076
|
||
|
$616
|
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