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 185,000 $ 2,960,000 $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $2,900. The following information was available with respect to this job $ 1,334 Direct materials Direct labor cost Machine-hours used $ 957 76 Compute the total manufacturing cost assigned to Job P90.
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 185,000 $ 2,960,000 $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $2,900. The following information was available with respect to this job $ 1,334 Direct materials Direct labor cost Machine-hours used $ 957 76 Compute the total manufacturing cost assigned to Job P90.
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text: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 $2,900. The following information was available with
respect to this job:
Direct materials.
Direct labor cost
Hachine-hours used
$1,334
$ 957
76
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
$
185,000
$ 2,960,000
$ 2.00
< Required 1
Required 2 >
Transcribed Image Text: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 $2.900. The following information was available with
respect to this job:
Direct materials
Direct labor cost
Machine-hours used i
$1,334
$ 957
76
Compute the total manufacturing cost assigned to Job P90
Complete this question by entering your answers in the tabs below.
185,000
$ 2,960,000
$ 2.00
Required 1 Required 2
Compute the plantwide predetermined overhead rate.
Predetermined overhead rate
per MH
<Required 1
Required 2 >
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