Jobs during July-one of which was Job 2. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Depart is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and Jobs Z: Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used Estimated total direct labor hours to be worked Job Z Direct materials Direct labor Machine-hours Machining $750 $ 200 40 Assembly $ 800 $900 Direct labor-hours If Job Z contains 40 units, the unit product cost for Job Z is closest to 60 Machining $ 48,000 $1.50 12,000 Assembly $ 30,000 $ 2.00 10,000

Jobs during July-one of which was Job 2. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Depart is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and Jobs Z: Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used Estimated total direct labor hours to be worked Job Z Direct materials Direct labor Machine-hours Machining $750 $ 200 40 Assembly $ 800 $900 Direct labor-hours If Job Z contains 40 units, the unit product cost for Job Z is closest to 60 Machining $ 48,000 $1.50 12,000 Assembly $ 30,000 $ 2.00 10,000

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Description: Assume a company started and completed numerous jobs during July-one of which was Job Z. The company uses two departmentalpredetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Depar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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