The budgeted data of Venny Limited for the year 2018 are shown below: Production overheads $528,000 Machine hours Required: 6,000 hours a. Calculate the pre-determined overhead application rate per machine hour. b. The cost data of Job No. 7796 completed in December 2018 are given below. Direct materials $4,800 Direct labor ($65 per hour) 20 hours Machine hours 220 hours Calculate the production cost for Job No. 7796 using the pre-determined overhead application rate per machine hour in (a).

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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The budgeted data of Venny Limited for the year 2018 are shown below:
Production overheads $528,000
Machine hours
Required:
6,000 hours
a. Calculate the pre-determined overhead application rate per machine hour.
b. The cost data of Job No. 7796 completed in December 2018 are given
below.
Direct materials
$4,800
Direct labor ($65 per hour) 20 hours
Machine hours
220 hours
Calculate the production cost for Job No. 7796 using the pre-determined
overhead application rate per machine hour in (a).
Transcribed Image Text:The budgeted data of Venny Limited for the year 2018 are shown below: Production overheads $528,000 Machine hours Required: 6,000 hours a. Calculate the pre-determined overhead application rate per machine hour. b. The cost data of Job No. 7796 completed in December 2018 are given below. Direct materials $4,800 Direct labor ($65 per hour) 20 hours Machine hours 220 hours Calculate the production cost for Job No. 7796 using the pre-determined overhead application rate per machine hour in (a).
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