Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with aplantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the followingestimates:Machine-hours required to support estimated productionFixed manufacturing overhead costVariable manufacturing overhead cost per machine-hourRequired:1. Compute the plantwide predetermined overhead rate.2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available withrespect to this job:$ 1,472Direct materialsDirect labor costMachine-hours used$ 1,05679Compute the total manufacturing cost assigned to Job P90.Complete this question by entering your answers in the tabs below.Required 1 Required 2200,000$ 2,800,000$ 2.00Compute the plantwide predetermined overhead rate.Predetermined overhead rateper MH< Required 1Required 2 > Compute the total manufacturing cost assigned to Job P90.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the total manufacturing cost assigned to Job P90.Direct materialsDirect laborOverhead appliedTotal manufacturing cost$0< Required 1Required 2

Name: Taveras Corporation is currently operating at 50% of its available ma
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Description: Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with aplantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the foll

Answer : 1) Predetermined overhead rate per machine hour : Budgeted fixed overhead costs…

Answered: port estimated production cost ad cost…

Business

Accounting

port estimated production cost ad cost per machine-hour termined overhead rate. started, completed, and sold to t $ 1,472 $ 1,056 79

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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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
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with
respect to this job:
$ 1,472
Direct materials
Direct labor cost
Machine-hours used
$ 1,056
79
Compute the total manufacturing cost assigned to Job P90.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
200,000
$ 2,800,000
$ 2.00
Compute the plantwide predetermined overhead rate.
Predetermined overhead rate
per MH
< Required 1
Required 2 >

Compute the total manufacturing cost assigned to Job P90.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the total manufacturing cost assigned to Job P90.
Direct materials
Direct labor
Overhead applied
Total manufacturing cost
$
0
< Required 1
Required 2

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The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?
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Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)
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